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BRRRR Calculator

Buy, rehab, rent, refinance, repeat. Enter the deal and see how much cash comes back out at the refinance, how much is left in the property, and what it cash-flows every month once it's rented.

How it works

1
Buy and rehab
Purchase price, how much of it you financed, closing, rehab and the holding costs until the refinance.
2
Refinance
The appraised value after repairs, the lender's loan-to-value, the rate and term, and the refi closing costs.
3
Rent
Monthly rent, taxes, insurance and the percentages you set aside for vacancy, maintenance and management.

How the BRRRR math works

  • Cash you put in = purchase price − purchase loan + closing + rehab + holding costs
  • Refinance loan = ARV × the lender's loan-to-value (often 70–75% on a cash-out refi)
  • Cash out at refinance = refinance loan − refi closing costs − paying off the purchase loan
  • Cash left in the deal = cash put in − cash out. Zero or less means you got every dollar back.
  • Monthly cash flow = rent − mortgage payment − taxes − insurance − vacancy, maintenance and management
  • Cash-on-cash return = annual cash flow ÷ cash left in the deal

A worked example

The calculator opens on this deal: buy for $110,000 cash, $3,000 closing, $35,000 rehab and $4,000 holding. That's $152,000 in. It appraises at $210,000 and the bank lends 75%, which is $157,500. After $4,500 refi closing you get $153,000 back. That's all your cash out, plus $1,000.

Rented at $1,950, the 30-year loan at 7.25% costs $1,074 a month. Taxes, insurance and 21% of rent set aside for vacancy, maintenance and management cost another $700. That leaves about $176 a month of cash flow, with none of your own money left in the house, and $52,500 of equity.

Change the purchase price to $130,000 and $19,000 stays in the deal. The same $176 a month is then an 11.1% cash-on-cash return.

What makes a BRRRR work

  • The all-in cost has to be low against the ARV. At 75% loan-to-value, you only get all your cash back if purchase, rehab, closing and holding come in under about 72% of the appraisal. The calculator shows your all-in percentage under the results.
  • The rent has to carry the new, bigger loan. A cash-out refi means a larger mortgage. Check that the cash flow is still positive at today's rates, not the rate you hope for.
  • Seasoning. Many lenders want you to own the property for 6–12 months before they lend on the new value. Budget the holding costs for that long.
  • Reserves. Set aside maintenance and capex even in year one. Our defaults are 5% vacancy, 8% maintenance and 8% management.

If the numbers only work as a flip, compare them in the house flip calculator. To screen a deal fast, the MAO calculator gives you a quick max offer.

Frequently asked questions

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, fix it up, rent it out, do a cash-out refinance on the higher value to get your money back, and use that money on the next one.

How much cash do I get back in a BRRRR refinance?

Refinance loan (ARV × loan-to-value) minus refi closing costs minus any loan you used to buy. If that's more than the cash you put in, you've pulled out all your money.

What loan-to-value do lenders allow on a cash-out refinance?

For investment properties it's commonly 70–75%, sometimes 80% with DSCR lenders. Check with your lender; it's the biggest lever in the calculation.

What is a good cash-on-cash return for a BRRRR?

Many investors look for 10% or more. When the refinance returns all your cash, the return is technically infinite. Then what matters is that the cash flow is still positive.

What is the seasoning period?

How long a lender wants you to own the property before it will refinance on the new appraised value, often 6–12 months. Plan holding costs and rent for that time.

Is the BRRRR calculator free?

Yes. No account and no email. Everything runs in your browser.

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