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BRRRR Strategy Calculator

Model Buy, Rehab, Rent, Refinance, Repeat deals. Enter your numbers below to see how much cash you'll leave in the deal after your cash-out refinance.

1

Purchase & Rehab

What you'll pay to acquire and fix the property.

$
$
$

What the property will appraise for once rehab is complete.

2

Rent & Holding Expenses

Ongoing income and costs once the property is rented.

$
$

Taxes, insurance, HOA, utilities, maintenance combined.

3

Refinance (Cash-Out Phase)

Terms of the new long-term mortgage after rehab.

%

Loan-to-value of ARV. Default 75%.

%

Annual rate, amortized over 30 years.

Refinance & Cash-Out Results

Your Deal Snapshot

Total Project Cost $0
New Loan Amount (Refinance) $0
Cash Left in Deal $0

New Mortgage (P&I)

$0

per month

Post-Refi Cash Flow

$0

per month

* If Cash Left in Deal is $0 or negative, you've recovered 100% (or more) of your invested capital through the refinance, a "Perfect BRRRR."

Deal Breakdown

Purchase price$0
Rehab cost$0
ARV$0
Equity created (ARV − Project Cost)$0
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Understanding Your BRRRR Numbers

A practical guide to how this calculator works, what "Perfect BRRRR" actually means, and where the strategy tends to break down.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is a strategy for recycling the same chunk of capital into multiple properties. The idea sounds simple: buy below market, add value through rehab, rent it out, then refinance based on the new, higher appraised value and pull your original cash back out. In practice, the strategy lives or dies on one number: how much cash is still tied up in the deal after the refinance closes.

This calculator models that exact moment, the day the refinance funds, using your purchase price, rehab budget, after-repair value (ARV), and the lender's loan-to-value (LTV) ceiling. It's built for investors underwriting a specific deal before they close, not for tracking a project after the fact.

How the Calculation Works

The calculator works through the deal in the order money actually moves: total cash invested, the size of the new loan the refinance lender will approve, and what's left in the deal once that loan pays off your acquisition and rehab costs.

Total Project Cost = Purchase Price + Rehab Cost

New Loan Amount = ARV × Refinance LTV%

Cash Left in Deal = Total Project Cost − New Loan Amount

New Mortgage Payment = standard 30-year amortized P&I on the New Loan Amount at your input rate

Post-Refi Monthly Cash Flow = Monthly Rent − Operating Expenses − New Mortgage Payment

Equity Created = ARV − Total Project Cost

A "Perfect BRRRR" happens when Cash Left in Deal is zero or negative, meaning the refinance returned all (or more than all) of your original cash, and you still own a cash-flowing rental with none of your own money left in it.

Worked Example

A common BRRRR setup: buy a property for $150,000, put $40,000 into rehab, and get it appraised at $260,000 ARV after the work is done. With a 75% refinance LTV:

  • Total project cost: $150,000 + $40,000 = $190,000
  • New loan amount: $260,000 × 75% = $195,000
  • Cash left in deal: $190,000 − $195,000 = -$5,000 (a Perfect BRRRR, plus a small surplus)

This only works because the ARV came in well above the total cost. If the appraisal had landed at $220,000 instead of $260,000, the new loan would only be $165,000, leaving $25,000 of your capital still stuck in the deal, which is the far more common outcome for first-time BRRRR investors.

Strengths of This Model

  • ✓Uses real 30-year amortization for the refinanced mortgage, not a rough interest-only estimate
  • ✓Separates equity created from cash recovered, since a deal can build equity without freeing up capital
  • ✓Flags the Perfect BRRRR outcome automatically so you don't have to eyeball it

Limitations to Know

  • ✕ARV is your input, and it's the single most overestimated number in BRRRR underwriting; the calculator can't verify it for you
  • ✕Doesn't include refinance closing costs, seasoning requirements, or lender-specific BRRRR restrictions
  • ✕Assumes rehab finishes on budget; overruns directly increase Cash Left in Deal

Who This Is For, and When Not to Use It

Use this calculator when you're underwriting a specific value-add property and need to know, before you close, roughly how much of your capital will still be tied up after the refinance. It's especially useful for comparing two rehab scopes on the same property (a $30,000 cosmetic update versus a $60,000 gut renovation) to see which one actually produces a better cash-out result.

Don't rely on it alone if you haven't gotten a real comparable-sales-based ARV opinion from an agent or appraiser. Most seasoning requirements (many lenders require 6 to 12 months of ownership before a cash-out refinance) also aren't modeled here, so confirm your lender's specific rules before assuming the refinance timeline this calculator implies.

Common Mistakes to Avoid

  • 1Using the listing agent's optimistic ARV instead of an independent comparable-sales estimate
  • 2Skipping a rehab contingency; a 10-15% buffer on the rehab budget is standard practice for a reason
  • 3Assuming your refinance LTV will be 80% when most cash-out refinances on investment property cap closer to 70-75%

Frequently Asked Questions

What does "Cash Left in Deal" actually mean?

It's the gap between what you spent to buy and rehab the property and what the refinance loan pays back to you. A positive number means some of your original cash is still tied up in the deal. Zero or negative means you got all of it back, and possibly extra.

Why is my refinance LTV capped lower than a purchase mortgage?

Cash-out refinances on non-owner-occupied investment property are considered higher risk by lenders than a standard purchase mortgage, so they typically cap around 70-75% LTV rather than the 80% you might see on a primary residence. Check with your specific lender, since this varies by loan program and property type.

Does this calculator account for the seasoning period before I can refinance?

No, it models the end state after the refinance closes, not the timeline to get there. Most lenders require 6 to 12 months of seasoning (ownership time) before they'll approve a cash-out refinance based on the new ARV rather than your original purchase price. Factor that holding period into your cash flow planning separately.

How does this compare to just running the numbers as a straight rental?

A straight rental purchase doesn't involve a forced-appreciation rehab or a refinance event, so the math is simpler but the capital stays fully invested. If you're deciding between buying a rent-ready property versus a value-add BRRRR candidate, run the rent-ready option through the Cash Flow Estimator and compare it against this calculator's post-refi cash flow number.

Related Calculators

Cash Flow Estimator

Model the same property as a straightforward long-term rental.

Fix-and-Flip Calculator

Compare a rehab-and-sell exit against the hold-and-refinance path.

Airbnb ROI Predictor

See how the same property performs as a short-term rental instead.