BRRRR calculator
Buy, rehab, rent, refinance — how much cash is left in the deal?
Designed for residential rental properties — single-family homes, condos, and small multifamily.
Refinance loan
$0.00
Cash left in deal
$0.00
Cash pulled out beyond cost
$0.00
Cash left in = Purchase + rehab − refinance loan
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Is this a good investment? →How it works
BRRRR means Buy, Rehab, Rent, Refinance, Repeat. You buy below value, improve it, rent it, then refinance at the new value to pull your cash back out.
The goal is to leave as little of your own cash in the deal as possible.
How the BRRRR method works
Buy a property below its potential value — usually with cash or short-term financing. Rehab it to raise both its value and its rent. Rent it out to establish income. Then refinance with a long-term loan based on the new, higher appraised value, pulling out most or all of your original cash. Repeat with the same capital on the next deal.
The magic is in the spread between your all-in cost and the after-repair value (ARV). Buy at $180,000, spend $40,000 on rehab, and if the ARV is $280,000, a 75% cash-out refinance returns $210,000 — nearly your entire $220,000 investment, leaving you a cash-flowing rental for almost nothing out of pocket.
The 70% rule and how much to offer
A common BRRRR and flipping guideline is the 70% rule: pay no more than 70% of ARV minus rehab costs. On a $280,000 ARV with $40,000 of rehab, that's a max offer around $156,000. Conservative, but it builds in room for holding costs, financing, closing costs twice (buy and refinance), and the surprises every renovation finds.
If you can't buy at a deep enough discount, BRRRR math breaks down — the refinance won't return your capital, and you've simply made a normal, cash-heavy purchase. The deal is made at the buy, not the rehab.
What can go wrong with BRRRR
The three classic failure points: the appraisal comes in below your ARV estimate, so the refinance returns less than planned; the rehab runs over budget or over schedule, inflating your all-in cost; or rates rise between purchase and refinance, shrinking the loan the property's value supports. Seasoning requirements — many lenders want 6–12 months of ownership before a cash-out refinance — also mean your capital is locked up longer than expected.
Mitigate all three the same way: conservative ARV (use sold comps, not listing prices), a 10–15% rehab contingency, and a deal that still works if you can't refinance for a year. And before the refinance, make sure the property cash-flows at the new loan amount — run the full rental property analysis with the post-refinance payment, not just the purchase math.
Frequently asked questions
What LTV do lenders allow on a cash-out refinance?
Usually 70–75% for investment properties, after a seasoning period of 6–12 months.
What is a good BRRRR deal?
One where your all-in cost is 70–75% or less of the ARV, so the refinance returns most or all of your cash and the property still cash-flows at the new loan payment.
Does this calculator include holding and closing costs?
No — add them to your purchase price or rehab figure for a realistic answer. Buying and refinancing each carry closing costs, and every month of rehab adds financing, tax, and insurance expense.