BRRRR Calculator
Analyse Buy, Rehab, Rent, Refinance, Repeat deals. See exactly how much cash you can recycle and what your return looks like. Results update in real time.
Deal Details
All-in acquisition cost
Total rehab budget
Estimated value post-rehab
Lender's loan-to-value limit
Annual rate on refinance loan
HOA, insurance, management
Results
Total Investment
$150,000
Equity After Refinance
$50,000
Money Left in Deal
$0 pulled out
Monthly Cash Flow
$252.05
Cash-on-Cash Return
∞
ROI on Money Left
∞ (money out)
How the BRRRR Strategy Works
The BRRRR method lets investors recycle capital by leveraging forced equity from renovation. Here is the typical sequence:
- Buy a distressed property below market value — typically at 65–75% of its after-repair value.
- Rehab the property to bring it up to market standard and increase its appraised value.
- Rent the property to a tenant. Lenders typically want 6–12 months of rental history before refinancing.
- Refinance at the new, higher appraised value — often recovering most or all of your invested capital.
- Repeat the process with the recycled capital on the next deal.
Key BRRRR Metrics Explained
| Metric | What it tells you |
|---|---|
| Total Investment | Purchase price plus all renovation costs — your total cash deployed |
| Equity After Refinance | ARV minus the refinance loan — your locked-in equity position |
| Money Left in Deal | Cash still tied up after refinancing. Zero or negative = infinite-return deal |
| Cash-on-Cash Return | Annual cash flow ÷ money left in deal. Infinite if no cash remains |
The 70% Rule for BRRRR
A common rule of thumb: your all-in cost should not exceed 70% of the ARV. This leaves room for a 70–75% LTV refinance to fully recover your capital.
Maximum Allowable Offer (MAO)
MAO = ARV × 70% − Renovation Cost
Example: ARV $200,000 × 70% − $30,000 rehab = Max $110,000 purchase price
Frequently Asked Questions
- What is the BRRRR strategy?
- BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The idea is to buy a distressed property below market value, renovate it, rent it out, then refinance based on the higher appraised value — pulling out most or all of your original cash so you can reuse it on the next deal.
- What does 'money left in the deal' mean?
- Money left in the deal is the amount of your own cash still tied up after the refinance. If you invested $150,000 total and pulled out $140,000 via the refinance loan, you have $10,000 left in. If the refinance exceeds your total investment, you have pulled out money — often called an infinite return deal.
- What LTV should I use for a BRRRR refinance?
- Most conventional lenders allow 70–75% LTV on a cash-out refinance of an investment property. Some portfolio lenders go to 80%. Use the rate your lender has quoted, or 75% as a conservative baseline.
- What is a good ARV for a BRRRR deal?
- ARV (After Repair Value) needs to be high enough that your refinance proceeds cover your total all-in cost (purchase plus rehab). A rule of thumb is that your all-in cost should be no more than 70–75% of ARV to leave room for the refinance and a cash flow cushion.
- What are the risks of the BRRRR strategy?
- The main risks are: underestimating renovation costs, overestimating ARV, appraisals coming in below expectation, higher-than-expected interest rates on the refinance, and prolonged vacancy during rehab and initial lease-up. Always build in a conservative contingency budget.