BRRRR Calculator

Buy, Rehab, Rent, Refinance, Repeat. Analyze the perfect investment strategy.

1

Purchase Phase

$
$
$

We assume the rest of the purchase price is financed via a bridge or hard money loan.

2

Rehab & Hold

$
$

Loan interest, utilities, insurance during rehab.

3

Refinance

$
4

Rent

$
$

Taxes, Insurance, Maint (Before Mortgage).

BRRRR Analysis

Total Capital Invested

$51,200

Down + Closing + Rehab + Holding

New Loan Amount

$120,000

Refinanced at 75% LTV

Cash Returned on Refi

$45,000

New Loan - Old Debt

Money Left in Deal

$6,200

Invested - Cash Returned

Annual Cash Flow

$3,130

Cash on Cash ROI

50.5%

💡 Pro Tip: The "Perfect BRRRR" happens when "Money Left in Deal" is $0 (or negative). This means you have pulled all your original cash out and own the property for free (infinite ROI).

Understanding the BRRRR Method

Buy, Rehab, Rent, Refinance, Repeat (BRRRR) is a strategy used by real estate investors to build a rental portfolio with limited capital. By forcing appreciation through renovation, you can recover your initial capital when you refinance, allowing you to use the same money to buy the next deal.

The 4 Phases of Wealth

  • Buy: Purchase a distressed property below market value (usually with cash or hard money).
  • Rehab: Renovate the property to increase its value (ARV) and make it rent-ready.
  • Rent: Place a tenant to generate cash flow and qualify for a conventional mortgage.
  • Refinance: Take out a long-term loan based on the new, higher appraisal value to pay off the short-term debt and recover your cash.

Frequently Asked Questions

What is the BRRRR strategy?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a strategy to build a portfolio by recovering your capital through refinancing.
What is the 70% Rule?
Investors should pay no more than 70% of the After Repair Value (ARV) minus repairs to ensure they can refinance all cash out.
Does refinancing trigger taxes?
Generally no. Cash-out proceeds are debt, not income, making it a tax-efficient way to access equity.
What is a seasoning period?
Banks often require you to own the property for 6-12 months before allowing a refinance based on the new appraised value.
What if the appraisal is low?
If the new appraisal comes in low, you may not be able to pull all your cash out, leaving money 'trapped' in the deal.