Free BRRRR calculator
BRRRR Calculator
Model your Buy-Rehab-Rent-Refinance-Repeat deal from purchase through refinance. See estimated cash-out proceeds, equity retained, and ongoing cash flow.
Example BRRRR deal
A distressed single-family in Indianapolis purchased at $100,000 with $45,000 in rehab, appraising at $210,000 after repair:
All-in cost
$155,000
Purchase + rehab + closing costs
After-repair value
$210,000
Post-renovation appraisal
Refinance proceeds
$157,500
75% LTV on $210k
Capital recovered
100%
Proceeds cover all-in cost
Monthly cash flow
$285
On refinanced loan at 6.5%
Cash-on-cash
∞
Zero capital remaining in deal
How the BRRRR model works
- Buy — Purchase a distressed property below market value. Enter purchase price and estimated closing costs.
- Rehab — Enter your rehab budget and estimated holding costs (carrying costs while renovating).
- Rent — Set expected monthly rent, vacancy, management, maintenance, CapEx, taxes, and insurance.
- Refinance — Enter the after-repair value and lender LTV. DealPrism calculates available cash-out and how much capital you recover.
- Repeat — See your remaining equity and cash flow. Use recovered capital to start the next deal.
BRRRR risk factors to model
- Rehab budget overruns — add a contingency buffer (typically 10–20% of rehab cost).
- ARV uncertainty — appraisers vary; conservative underwriting uses 80–90% of your estimated ARV.
- Refinance seasoning requirements — some lenders require 6–12 months of ownership before a cash-out refinance.
- Rate environment — refinancing locks in the prevailing rate, which affects long-term cash flow.
Frequently asked questions
- What is the BRRRR strategy?
- BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The goal is to buy a distressed property at a discount, renovate it to increase value, rent it out, then do a cash-out refinance to recover your initial capital and repeat the process with the same money.
- How do I calculate BRRRR refinance proceeds?
- After-repair value (ARV) × lender LTV limit − remaining loan balance = available cash-out. For example, a property appraised at $200,000 with a 75% LTV refinance yields $150,000. If you owe $110,000, you receive $40,000 cash out.
- What LTV is typical for a BRRRR refinance?
- Most conventional investment property lenders cap cash-out refinances at 75% LTV (loan-to-value). Some portfolio lenders go to 80%. Confirm with your lender before underwriting a deal.
- How do I know if a BRRRR deal works?
- A successful BRRRR recovers most or all of your initial capital in the refinance, then generates positive cash flow from the rented property. DealPrism models both the refinance outcome and the ongoing cash flow so you can evaluate the full deal.
- What costs does the BRRRR calculator include?
- Purchase price, rehab budget, closing costs, holding costs during rehab, and refinance closing costs. On the income side: monthly rent, vacancy, management, maintenance, CapEx, taxes, and insurance. The resulting cash flow is calculated using the refinanced loan balance.
- What is infinite cash-on-cash return in BRRRR?
- If you recover 100% of your cash invested through the refinance and the property still generates positive cash flow, your cash-on-cash return is theoretically infinite — you have zero remaining capital deployed. In practice, most deals partially recover capital; 70–90% recovery is considered strong.
Model your BRRRR deal
Free to use. Enter your purchase price, rehab budget, and ARV to see refinance proceeds and cash flow instantly.
Analyze your own deal — freeResults are based on user-entered assumptions. Values may vary by property, location, and market conditions. Review all assumptions before making investment decisions.