Enter your deal numbers and instantly see how much capital you recover, your monthly cash flow, and your cash-on-cash return across the full BRRRR cycle.
Buy & Rehab Phase
Refinance Phase
75%
Rent Phase
Include taxes, insurance, maintenance, property management, and a vacancy allowance. Do not include the mortgage payment.
Total Cash Left in Deal
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Enter your deal numbers above to see results.
Monthly Cash Flow
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Cash-on-Cash Return
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New Refinance Loan Amount
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Key Terms Explained
BRRRR Strategy
An acronym for Buy, Rehab, Rent, Refinance, Repeat. An investor buys a distressed property at a discount, renovates it, rents it out, refinances based on the new appraised value to recover capital, then recycles that capital into the next deal.
After Repair Value (ARV)
The estimated market value of a property after all planned renovations are complete. ARV is determined by analyzing comparable sales of similar, fully renovated properties in the same area. It is the foundation of all BRRRR refinance math.
Loan-to-Value (LTV)
The ratio of a loan amount to the appraised value of the property, expressed as a percentage. For example, a $165,000 loan on a $220,000 property is a 75% LTV. Lenders use LTV to manage risk; most refinance lenders cap cash-out refinances at 70-80% LTV.
Seasoning Period
The minimum time a lender requires you to own a property before allowing an ARV-based refinance rather than using the original purchase price. Conventional lenders typically require 6 months of seasoning. Some portfolio lenders have no seasoning requirement at all.
Cash-on-Cash Return
Your annual cash flow divided by the cash you actually have invested in the deal, expressed as a percentage. It measures the efficiency of your deployed capital. A cash-on-cash return above 8-10% is generally considered strong for a rental property.
Net Operating Income (NOI)
Gross rental income minus all operating expenses, before debt service. NOI = Gross Rent minus (taxes + insurance + maintenance + management + vacancy). It represents the property's income-generating ability independent of how it is financed.
Debt Service Coverage Ratio (DSCR)
NOI divided by the annual mortgage payment (principal + interest). A DSCR above 1.0 means the property generates enough income to cover its debt. Most DSCR lenders require a minimum of 1.0 to 1.25. It is a key metric lenders use to qualify investment property loans.
Debt Service
The total monthly mortgage payment of principal and interest on the refinanced loan. Calculated using standard amortization. This is the key cost that determines whether a property cash flows positively after the refinance is complete.
The Complete Guide to the BRRRR Strategy
The BRRRR strategy - Buy, Rehab, Rent, Refinance, Repeat - is one of the most powerful wealth-building frameworks in real estate investing because it solves the fundamental constraint of growing a rental portfolio: running out of capital. Instead of tying up a full down payment in each new deal, a successful BRRRR investor recovers most or all of their initial investment through a cash-out refinance, then deploys that same capital into the next property. Done correctly, one pool of starting capital can be used to acquire a portfolio of cash-flowing rentals.
How to Use This Calculator
Fill in the Buy and Rehab panel with your purchase price, estimated renovation costs, and buying closing costs. In the Refinance panel, enter the After Repair Value you expect after renovations, set your expected LTV limit using the slider (75% is a common conventional limit), and enter the refinance rate and closing costs you anticipate. In the Rent panel, enter the gross monthly rent you expect and your total monthly operating expenses - do not include the mortgage in operating expenses, as the calculator handles debt service separately.
All outputs update in real time. The primary hero metric shows how much of your original capital remains in the deal after the refinance. If you have structured the deal correctly, this number will be small or even negative, which means you pulled out more than you put in - a true infinite ROI situation shown with a golden glow.
Understanding "Cash Left in Deal"
This is the single most important BRRRR metric. Your Total Initial Investment is the sum of your purchase price, rehab costs, and buying closing costs - every dollar you put in before the refinance. After the refinance, the lender gives you a new loan based on the ARV. That loan amount, minus your Total Initial Investment and refinance closing costs, determines how much of your own money remains locked in the property. A zero or negative result means the strategy worked: the bank's money is funding the deal, and your original capital is free to be recycled into the next property.
The Infinite ROI Scenario
When Cash Left in Deal reaches zero or goes negative (you pulled out more than you invested), the cash-on-cash return formula breaks down mathematically - you cannot divide by zero or a negative number and get a meaningful percentage. In this scenario, the true answer is that your return is infinite: you are earning passive income on a property you own for free from a capital perspective. This is the holy grail of the BRRRR strategy. This calculator displays "Infinite %" and applies a golden glow to signal this outcome.
Why Accurate ARV Estimation Is Everything
The entire BRRRR model flows downstream from the ARV. An optimistic ARV estimate makes the numbers look great on a spreadsheet but can result in a low appraisal, a smaller loan than planned, and more capital stuck in the deal than expected. Experienced investors always stress-test their ARV by pulling multiple comparable sales, being conservative about condition adjustments, and confirming the ARV with a local agent or appraiser before committing to a purchase. Running the numbers at a 5-10% lower ARV than your target estimate is a good sanity check before you close.
FAQ
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investing strategy where an investor purchases a distressed property at a discount, renovates it to increase its value, places a tenant to generate rental income, then does a cash-out refinance based on the new appraised value to pull out most or all of the original capital invested. The recovered capital is then recycled into the next deal, allowing the investor to grow a rental portfolio without continuously needing fresh capital for each purchase.
The After Repair Value (ARV) is the estimated market value of the property after all renovations are complete. The most reliable method is analyzing comparable sales (comps) - recently sold properties in the same neighborhood with similar square footage, bedroom and bathroom count, lot size, and finished condition. Real estate agents, appraisers, and platforms like Zillow or Redfin can provide comp data. Many experienced investors apply the 70% rule as a quick filter: they will not pay more than 70% of the ARV minus repair costs for a property. If your ARV estimate is too optimistic, the entire BRRRR math collapses, so conservative, evidence-based ARV estimates are critical to deal success.
A seasoning period is the minimum length of time a lender requires you to have owned a property before they will allow you to refinance it based on a new appraised value rather than the original purchase price. For conventional loans backed by Fannie Mae and Freddie Mac, the standard seasoning requirement is 6 months from the date of purchase. Some portfolio lenders or local community banks may have shorter or no seasoning requirements, which is one reason many BRRRR investors use portfolio lenders for their refinances. Refinancing before the seasoning period ends often means the lender caps the loan at a percentage of the original purchase price rather than the higher ARV - significantly reducing the capital you can pull out.
A low appraisal is one of the biggest risks in the BRRRR strategy. If the appraiser comes in below your estimated ARV, the lender will base the refinance loan on the lower appraised value, meaning you pull out less cash than planned and more of your capital stays locked in the deal. This reduces your cash-on-cash return and slows your ability to Repeat the cycle. To protect yourself: always run your BRRRR numbers conservatively using a lower ARV estimate than you expect; focus rehab scope on value-adding improvements that appraisers reward (kitchens, bathrooms, curb appeal); and collect your own comp analysis before the appraisal so you can provide supporting data to the appraiser if the value comes in low. You can also formally request a Reconsideration of Value (ROV) from the lender if you have strong comparable evidence.
This calculator provides estimates for educational and planning purposes only. Results are based on the inputs you provide and use simplified financial models. Actual property values, appraisals, loan terms, rental income, and operating costs will vary. This is not financial, tax, legal, or investment advice. Consult a qualified real estate professional, lender, and financial advisor before making any investment decision. All calculations run entirely in your browser - no data is sent to any server.