BRRRR Calculator
Walk through each phase of a BRRRR deal — Buy, Rehab, Rent, Refinance — and see exactly how much cash you'll recover, your monthly cash flow, and your true cash-on-cash return.
Step 1: Buy — Acquisition Details
Enter the purchase price and how you plan to finance the acquisition.
BRRRR Summary
Fill in deal details to see your returns
Cash Left in Deal
$0 — All Out!
Monthly Cash Flow
$0
Annual Cash Flow
$0
Equity
$0
BRRRR = Buy, Rehab, Rent, Refinance, Repeat
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What Is the BRRRR Method?
The BRRRR method is a real estate investment strategy that allows investors to build a rental portfolio using the same pool of capital over and over. Each letter represents a phase:
- Buy — Purchase a distressed or undervalued property below market value. Most investors use cash or a short-term loan (hard money) for the acquisition.
- Rehab — Renovate the property to increase its value and make it rent-ready. The goal is to create a significant gap between your total cost and the after-repair value (ARV).
- Rent — Place a tenant and stabilize the property with market-rate rent. Lenders want to see a performing asset before they refinance.
- Refinance — Do a cash-out refinance based on the new, higher appraised value. The new loan pays off any existing debt and returns your original capital.
- Repeat — Take the recovered capital and start the process again with the next property.
The Math Behind a Successful BRRRR
The key to a profitable BRRRR is the spread between your all-in cost and the after-repair value. Here's a simplified example:
| Purchase Price | $120,000 |
| Rehab Cost | $40,000 |
| Closing & Holding Costs | $8,000 |
| Total Cash Invested | $168,000 |
| After Repair Value (ARV) | $230,000 |
| New Loan (75% LTV) | $172,500 |
| Refi Closing Costs (2%) | ($3,450) |
| Cash Recovered | $169,050 |
| Cash Left in Deal | $0 (all out!) |
In this example, the investor recovers all their capital and now owns a cash-flowing rental with $57,500 in equity — and can immediately redeploy that $168,000 into the next deal.
Common BRRRR Mistakes to Avoid
- Overestimating ARV — Be conservative with your after-repair value estimate. Use recent comparable sales, not aspirational pricing.
- Underestimating rehab costs — Always pad your renovation budget by 10-20%. Unexpected issues (foundation, plumbing, electrical) are common in distressed properties.
- Ignoring holding costs — Every month a property sits vacant during rehab costs you money in taxes, insurance, utilities, and loan interest.
- Negative cash flow after refi — Pulling out maximum cash means a larger mortgage payment. Make sure the property still cash flows after the refinance.