BRRRR Calculator

What the BRRRR strategy is

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Rather than selling a renovated property like a flip, you refinance it based on its new, higher appraised value, pull cash back out, and use that cash toward the next property. Done well, it lets an investor recycle the same capital across multiple rentals instead of it staying tied up in the first one.

How this calculator works

The calculator tracks the deal in two stages. First, total cash invested through the rehab: purchase price, repair budget, closing costs, and holding costs while the work is done. Second, the refinance: a new loan sized to a target loan-to-value (LTV) of the after-repair value pays off the initial cost basis, and whatever's left — cash left in the deal — is what's still tied up (or, if the refinance covers everything, what's still owed back to you). Equity created is the gap between ARV and total cash invested. Once refinanced, the calculator also shows the new monthly mortgage payment and resulting cash flow.

Worked example

A property purchased for $120,000, needing $30,000 in repairs, reaching an ARV of $190,000 after a 4-month rehab. Total cash invested (purchase, repairs, ~$2,400 in closing costs, and ~$880 in holding costs) comes to about $153,280. Refinancing at 75% LTV of the $190,000 ARV produces a new loan of $142,500 — leaving about $10,780 still tied up in the deal, against roughly $36,720 in equity created. At a 7% refinance rate, the new mortgage payment is about $948/month; after taxes, insurance, vacancy, management, and reserves, monthly cash flow lands around $218 — while over $142,000 of the original capital is now back in hand for the next deal.

How to interpret the results

The lower "cash left in deal" is, the more efficiently capital is being recycled — a number at or near zero (or negative, sometimes called an "infinite return" deal) means the refinance returned all, or more than all, of the cash originally put in. A larger number isn't necessarily a bad deal, just a less capital-efficient one; whether that's acceptable depends on how much cash you have available to keep going.

Common BRRRR mistakes

• Assuming the refinance appraisal will match your target ARV exactly — appraisals can come in lower, especially in slower markets.
• Not accounting for lender "seasoning" requirements — many lenders require you to own the property for a minimum period (often 6-12 months) before a cash-out refinance.
• Underestimating rehab scope or timeline, which increases holding costs and delays the refinance.
• Refinancing into a rate or term that erases the cash flow the deal needed to work as a rental long-term.

FAQ

Is BRRRR the same as a flip that you keep instead of sell?
Similar setup, different exit — a flip converts the ARV to cash via a sale; BRRRR converts it to cash via a refinance while keeping the property as a rental.

What if the refinance doesn't cover all my cash invested?
That's normal and doesn't mean the deal failed — it just means less capital is freed up for the next property. The cash flow and equity position may still make it worthwhile.

What refinance loan term does this assume?
The calculator defaults to a standard 30-year refinance loan term for the new mortgage payment calculation.