BRRRR Strategy

BRRRR Calculator

Buy, Rehab, Rent, Refinance, Repeat, Calculate your returns and see if you can achieve infinite ROI.

Deal Inputs

Enter your BRRRR deal numbers

Acquisition

Refinance Terms

Rental Income & Expenses

How the BRRRR calculator works

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investing strategy that lets you recycle the same capital across many deals by buying undervalued property, renovating it to raise the value, renting it out, then refinancing to pull your money back out. This BRRRR calculator turns those five steps into numbers so you can tell a clean deal from a capital trap before you sign anything.

The core BRRRR formulas

  • Total Investment = Purchase Price + Rehab Costs
  • Refinance Amount = After Repair Value (ARV) times LTV percent
  • Cash Recovered = Refinance Amount minus Total Investment
  • Money Left In = Total Investment minus Refinance Amount, floored at zero
  • Cash-on-Cash = Annual Cash Flow divided by Money Left In

Worked example

Say you buy a property for 150,000 dollars and spend 40,000 dollars on rehab, so your all-in cost is 190,000 dollars. After the work, the after repair value is 250,000 dollars. At a 75 percent refinance, the new loan is 187,500 dollars, which returns nearly all of your 190,000 dollars and leaves only 2,500 dollars in the deal. If the property rents for 2,000 dollars a month and nets 300 dollars after the new mortgage, taxes, insurance, vacancy, and management, that is 3,600 dollars a year on 2,500 dollars left in, a cash-on-cash return well above 100 percent. You recover your capital, keep the cash flow, and move to the next deal. That is the whole point of BRRRR.

What makes a strong BRRRR deal

A strong BRRRR deal recovers most or all of your capital at refinance and still cash flows after the new mortgage. Watch three levers: buy well below market, control rehab scope so it does not blow the budget, and confirm the ARV with real comparable sales rather than optimism. When the refinance loan meets or beats your all-in cost, the money left in drops toward zero and your return on remaining cash climbs sharply.

Frequently asked questions

What is the BRRRR method in real estate?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a below-market property, renovate it to raise the value, rent it to a tenant, then do a cash-out refinance to pull your capital back out. You reuse that capital on the next deal, which lets you grow a rental portfolio without saving a fresh down payment for every purchase.

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

Most BRRRR investors target a cash-on-cash return of 8 percent or higher on any money left in the deal. If the refinance returns all of your capital, the cash-on-cash return is effectively infinite because you have zero cash left invested. The higher the after repair value is relative to your all-in cost, the more cash you recover.

How much cash should I leave in a BRRRR deal?

The goal of a clean BRRRR is to leave little or no cash in the deal after refinancing. In practice many investors accept leaving 5,000 to 15,000 dollars in if the property still cash flows well. Leaving too much in ties up capital you could use on the next purchase, so compare money left in against annual cash flow before you commit.

How is the refinance amount calculated in BRRRR?

Your refinance amount is the after repair value multiplied by the lender loan-to-value ratio, commonly 70 to 75 percent. If your ARV is 250,000 dollars at 75 percent LTV, the new loan is 187,500 dollars. As long as that new loan exceeds your purchase price plus rehab, you recover all your capital and can repeat the process.

What is the 70 percent rule for BRRRR and flips?

The 70 percent rule says your all-in cost should stay at or below 70 percent of the after repair value minus rehab. It is a quick screen, not a guarantee. This calculator goes further by modeling your actual refinance, monthly cash flow, and cash-on-cash return so you can judge a deal on real numbers.

Related calculators

Tired of typing every number by hand? Resideline analyzes any real US address, pulling comps, rent estimates, and ARV so you can run BRRRR math in one click. Plans start free and go from $29/mo for the full platform.