BRRRR Calculator: Buy, Rehab, Rent, Refinance, Repeat

How the BRRRR method works

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property below market value (often with cash or a short-term loan), renovate it, rent it out, then refinance into a long-term mortgage based on the higher after-repair value. The refinance returns some or all of your cash, which you use for the next deal.

The math behind this calculator

All-in cost = Purchase + Closing + Rehab + Holding costs
New loan = ARV × Refinance LTV
Cash left in deal = All-in cost + Refi closing costs − New loan

This assumes you bought with cash (or that the new loan first pays off any purchase loan, which gives the same cash-left figure). After the refinance, cash flow is rent minus operating expenses minus the new mortgage payment.

Example

Buy for $150,000, pay $4,000 to close, spend $45,000 on rehab and $6,000 holding it: $205,000 all-in. It appraises at $250,000, and a 75% LTV refinance gives a $187,500 loan. After $5,000 in refinance costs you have $22,500 left in the deal. If the property then cash flows $200 a month, your cash on cash return is $2,400 ÷ $22,500 = 10.7%.

The 75% rule

Many BRRRR investors aim for an all-in cost of no more than 75% of ARV, which is the maximum many lenders will lend on a cash-out refinance of an investment property. At that level the refinance returns nearly all of your capital.

Risks to plan for

Appraisal comes in low: the loan is based on the appraiser's value, not yours. Run the calculator with an ARV 10% lower.
Seasoning: many lenders require you to own the property for 6 to 12 months before a cash-out refinance based on the new value.
Rehab overruns and rate changes: both shrink the cash you get back and the cash flow afterward.

Frequently asked questions

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat, a strategy for building a rental portfolio by recycling the same capital through multiple properties.

What LTV can I get on a cash-out refinance of a rental?

Commonly 70% to 75% of appraised value for single-family investment properties, sometimes 80% with DSCR lenders. Check current requirements with your lender.

What is a good amount of cash left in a BRRRR deal?

The goal is as close to zero as possible while the property still cash flows. Many investors are happy leaving 10% to 20% of their original cash in a deal that cash flows well.

Does this calculator include the purchase loan?

It assumes the refinance pays off everything used to buy and rehab the property, so the cash left in the deal is the same whether you used cash or a hard money loan, apart from loan costs you include in holding costs.

Last reviewed: 2026-10-09

BRRRR Calculator