Free Tool

BRRRR Calculator

Buy, Rehab, Rent, Refinance, Repeat. Enter your deal numbers and see cash left, cash-on-cash, monthly cash flow, and equity created. Built for operators who actually pull the trigger.

Acquisition
$
$
$
$

Taxes, insurance, utilities, hard money interest while you renovate.

Refinance
$

Appraised value after renovation. Use sold comps, not hopes.

%
%
yrs
Operations
$
$
%
Or load an example
Cash left in deal
$-5,000
$130,000 all-in − $135,000 refi proceeds. Recaptured 103.8% of capital.
Monthly cash flow
$286
After P&I of $898
Cash-on-cash
∞
All capital recaptured
Equity created
$50,000
ARV − all-in cost
Annual cash flow
$3,436
$1,535 × 12 effective rent
Reading this: A textbook BRRRR pulls 100% of capital out (cash left ≤ $0). Most operators settle for 70-90% recapture. Monthly cash flow under $200/door is thin — verify it survives a 7% vacancy or unexpected repair year.
The Method

What BRRRR actually does

BRRRR — Buy, Rehab, Rent, Refinance, Repeat — is a real estate strategy where you force value into a property through renovation, then refinance into a long-term mortgage based on the new appraised value to pull your capital back out for the next deal.

When it works, you build a portfolio with the same dollars deployed over and over. When it fails, it's usually because the ARV came in below projection, rehab ran over budget, or rates shifted during the seasoning period.

The 5 Steps
  1. 1. Buy — purchase a distressed property (cash or hard money) at a discount.
  2. 2. Rehab — renovate to force appreciation and stabilize for rental.
  3. 3. Rent — lease to market-rate tenants. Establish cash flow.
  4. 4. Refinance — after 6-month seasoning, cash-out refi at 70-80% of new appraised value (ARV).
  5. 5. Repeat — use the refi proceeds to fund the next deal.
The Math

How a BRRRR pencils

The textbook BRRRR pulls 100% of your capital back at refinance. That requires the refi loan (typically 75% of ARV) to exceed your all-in cost.

Worked example:
Purchase price: $80,000
Rehab cost: $40,000
Closing + holding: $10,000
All-in cost: $130,000
ARV after rehab: $180,000
Refi at 75% LTV: $135,000
Cash left in deal: −$5,000 (you pulled all capital out + $5k extra)

In practice, most BRRRRs leave $5,000–$20,000 in the deal. That's still a strong outcome — your cash-on-cash return on that remaining capital is typically 15-25% if the cash flow math worked.

Watch-outs

What kills BRRRR deals

01Anchor-bias ARV estimates

Investors talk themselves into ARVs $20-30k above what appraisers will support. The fix: run your comps cold (before you fall in love with the deal) and apply downward pressure on adjustments. If the deal only works at the high ARV, walk.

02Ignoring holding costs

Property tax, insurance, utilities, hard money interest, lawn care during the 4-6 months of rehab and seasoning. These typically add $4-12k to your all-in number. Operators who skip this line are surprised when their refinance doesn't cover their actual outlay.

03Optimistic rehab timelines

A '8-week rehab' on a value-add property routinely runs 14-20 weeks. Permits, contractor scheduling, surprise scope, seasonal delays. Every extra month is another month of holding costs and another month delaying your seasoning clock.

04Not pre-qualifying the refi

Talk to your refinance lender BEFORE you buy. Get pre-approved at the LTV you're underwriting. Lenders tighten in soft markets — 75% LTV last quarter might be 70% next quarter. Your model needs to survive that.

05Underpricing rent

Many BRRRR investors underwrite rent at current market and forget that the renovation itself can push rent above market for the area. Conversely, some over-price renovated rent by 15-20% and lose months to vacancy. Get the rent right — survey actually-renovated comps, not just any comps.

FAQ

Frequently asked questions

What is BRRRR?+
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate strategy where you buy a distressed property (typically with cash or hard money), renovate it to force appreciation, rent it for cash flow, refinance into a long-term mortgage based on the new appraised value, and use the refi proceeds to pull your capital out for the next deal. Done right, you build a portfolio with the same dollars deployed over and over.
What's a 'good' BRRRR result?+
The textbook BRRRR pulls 100% of your capital back at refinance. That requires the refi loan (typically 75% of ARV) to exceed your all-in cost (purchase + rehab + closing + holding). If you bought for $80k, put in $40k rehab, and the ARV is $180k, a 75% LTV refi gives you $135k — covering your $120k all-in plus pulling out $15k. That's a textbook BRRRR. Most operators settle for 'pulled out 70-90%' as a strong result.
How do I estimate ARV (After Repair Value)?+
Use comparable sold properties (comps) within the same neighborhood, similar size and condition, sold in the last 3-6 months. Get 3-5 comps minimum. Adjust for differences (extra bedroom, finished basement, garage). The ARV should be supportable by an appraiser — over-estimating ARV is the most common BRRRR failure mode because the refinance appraisal won't come in where you hoped.
What rehab costs should I include?+
All hard costs (materials + labor), plus a 10-15% contingency for surprises. Don't forget permits, utility transfers, dumpster, port-a-potty, and your holding costs while the property is being renovated (insurance, taxes, utilities, hard money interest payments). The 'rehab budget' line on broker pitches usually doesn't include any of this — bake it in.
Should I use hard money or cash for the initial purchase?+
Depends on the deal velocity you can achieve. Hard money costs 9-13% interest plus 2-3 points origination, but lets you scale by recycling cash faster. Cash purchases save the interest but tie up your capital until refinance (which is typically 6 months minimum due to seasoning requirements). Most active BRRRR investors use hard money — the math works if you can complete the rehab + refinance in under 6 months.
What's the seasoning period?+
Most conventional cash-out refinance lenders require 6 months of ownership ("seasoning") before they'll lend on the new appraised value rather than your purchase price. DSCR loans sometimes wave this to 3 months. Some portfolio lenders go shorter. Plan for 6 months as your default — if you find a faster lender, that's a bonus.
How does the refinance work?+
After 6 months of ownership and rehab complete, you order a new appraisal on the renovated property. The lender lends 70-80% of the new appraised value (LTV varies by lender and property type). The new loan pays off your original purchase loan (hard money or cash-out), and any surplus goes to you. Your monthly payment switches from interest-only (hard money) to amortized P&I (conventional).
Cash-on-cash vs infinite return — what's the difference?+
If you pull ALL of your capital out at refinance (cash left in deal = $0), the return calculation breaks — you're earning cash flow on no invested capital. This is the 'infinite return' BRRRR aspiration. In practice, most BRRRRs leave $5-20k in the deal. Calculate cash-on-cash on that remaining amount. Anything above 12-15% cash-on-cash on the remaining capital is a strong outcome.
What kills a BRRRR deal?+
Three things most often: (1) over-estimating ARV — the refinance appraisal comes in 10-20% below your projection; (2) rehab overruns — the $40k budget becomes $55k due to surprises (electrical, plumbing, foundation, roof); (3) market shift during your 6-month seasoning period — rates rise or comps decline and your refinance proceeds shrink. Build cushions for each.
Should I BRRRR small multifamily?+
Yes, but the dynamics shift. Multifamily is valued on NOI (cap rate × NOI), not residential comps. To force value, you raise NOI — through rent increases, expense reductions, or adding units. A 2-unit duplex still uses residential comps; 5+ unit properties switch to commercial appraisal methodology. This changes your refinance strategy materially.
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