BRRRR Calculator
Analyze a full Buy-Rehab-Rent-Refinance-Repeat cycle.
BRRRR Breakdown
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The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is a real estate investment strategy designed to recycle capital across multiple properties. This calculator helps you analyze each step of the cycle before committing money.
- Enter the purchase price and rehab costs. These represent your total cash investment into the property before refinancing. Include all renovation expenses: materials, labor, permits, and a contingency buffer.
- Set the after-repair value (ARV). This is the appraised value of the property after renovations are complete. Research comparable sales in the area for an accurate estimate.
- Configure the refinance terms. Set the loan-to-value ratio (most lenders offer 70-80% LTV on investment properties), the interest rate, and loan term. The calculator computes the new mortgage payment automatically.
- Enter rental income and expenses. Set the monthly rent, expected vacancy rate, and monthly operating expenses (insurance, property taxes, maintenance, property management fees).
Results update instantly as you type. The primary result shows your monthly cash flow after the refinance. If cash left in deal is negative, you pulled out more than you invested, meaning you have infinite returns on the remaining capital. Use the Share button to send a pre-filled link to partners or lenders.
About the BRRRR Strategy
The BRRRR strategy allows investors to build a rental portfolio by repeatedly recycling the same pool of capital. You buy a property below market value, renovate it to force appreciation, rent it out to generate income, then refinance to pull your initial investment back out. The recovered capital funds the next deal.
The key to a successful BRRRR is buying at the right price and executing a rehab that creates enough equity to recover most or all of your cash at refinance. Ideally, you want the refinance loan to cover your total invested amount while still generating positive monthly cash flow. All calculations run entirely in your browser with no data sent to any server.
Frequently Asked Questions
What is the BRRRR method in real estate?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is an investment strategy where you purchase a property below market value, renovate it to increase its value, rent it out for income, refinance to pull out your invested capital, then use that capital to repeat the process with a new property. The goal is to build a portfolio of cash-flowing rentals while recycling the same initial investment.
What is the ideal BRRRR scenario?
The ideal BRRRR deal leaves zero cash in the property after refinancing while still generating positive monthly cash flow. This means the refinance loan fully covers your purchase price plus rehab costs, and the rental income exceeds your mortgage payment and operating expenses. Achieving this typically requires buying 20-30% below ARV and keeping rehab costs controlled.
What is a cash-out refinance for BRRRR?
A cash-out refinance replaces your original purchase financing with a new, larger loan based on the property's after-repair value. Most lenders will finance 70-80% of the appraised value. If the new loan amount exceeds what you originally invested, you receive the difference as cash, which you can use to fund your next BRRRR deal.
What are the main risks of the BRRRR strategy?
The biggest risks include: the property appraising lower than expected after rehab (leaving more cash trapped in the deal), rehab costs exceeding the budget, difficulty finding tenants at your target rent, and interest rate increases between purchase and refinance. Extended vacancy periods and unexpected repairs can also erode cash flow. Always model conservative scenarios before committing capital.