BRRRR Calculator: How Much Comes Back Out
Buy, rehab, rent, refinance, repeat. Enter the purchase, the rehab, and the after-repair value to see how much capital the refinance returns, what stays trapped in the deal, and whether the property still cash-flows once the new loan is on it.
Buy & Rehab
Refinance
Rent
Auto-calculated (1% of ARV/yr)
Cash Left In
$8,360
Capital Recovered
80.3%
New Loan
$150,000
Equity Captured
$50,000
$8,360 still in the deal · A partial recycle is normal and still works. That remaining cash is what your cash-on-cash return is measured against on the Hold tab.
The Refinance, Line by Line
The loan sizes against the after-repair value, so the value you created through the rehab is what returns your capital. Raise the ARV or the LTV and more cash comes back, though a bigger loan also means a bigger payment on the Hold tab.
The refinance is the whole strategy.
This calculator estimates. The refinance qualifies on the property’s rent, so run the real numbers with the desk. No tax returns in the file.
Run My Numbers60 seconds · No documents · No tax returns
What is the BRRRR method?
BRRRR stands for buy, rehab, rent, refinance, repeat. You buy a property that needs work, usually with short-term financing, renovate it so it appraises for more than you have in it, rent it out, then refinance into long-term financing. The refinance hands back the cash you put in, and that cash goes toward the next property. Done well, the same pile of money buys door after door instead of sitting in one deal.
How does the refinance return your capital?
The new loan sizes against the after-repair value, which is the number that makes the whole strategy work. Buy at $100,000, put $40,000 into the renovation, and get an appraisal at $200,000, and a refinance at 75% of value writes a $150,000 loan. That loan retires your short-term financing and the remainder comes back to you. Notice the loan has nothing to do with your $140,000 cost basis. It keys off the value you created, so forcing appreciation through the rehab is what frees the capital.
What is cash left in the deal?
Cash left in is every dollar you put out of pocket minus what the refinance handed back. Out of pocket covers the cash share of the purchase and rehab, points, the interest-only carry while you renovate, holding costs, and closing on both ends. When that figure hits zero you have recovered everything and the property is running on the bank money. A partial recycle still works, and the cash you leave behind becomes the basis your cash-on-cash return is measured against.
What goes wrong with BRRRR?
Three failures show up over and over. The appraisal lands under your after-repair value, which shrinks the refinance and traps capital. The rehab runs long, and every extra month of interest-only carry comes out of your pocket without adding value. Or you chase a bigger refinance to pull every dollar out and end up with a payment the rent cannot cover. That last one is worth staring at. Pulling all your capital out of a property that loses money every month is not a win, which is why this calculator reports the cash-flow answer separately from the capital-out answer and refuses to call a bleeding rental an infinite return.
Financing the refinance
The refinance is where the strategy is won, and it is also where personal income underwriting stops many investors. A DSCR loan qualifies on the finished property rent against its payment, so the file never opens your tax returns. This calculator reports DSCR on the refinanced loan for that reason, since it is the same test the desk runs. When the ratio comes in tight, a no-ratio program is the honest next conversation, and DSCR versus hard money covers choosing the short-term side.
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What is a seasoning period on a BRRRR refinance?
Seasoning is how long a lender wants you to own the property before they will refinance against its new value instead of what you paid. Requirements vary by program, so confirm the seasoning rule before you buy. A long wait means more months of carrying short-term financing, which shows up directly in your cash left in.
What happens if the appraisal comes in below my ARV?
Your refinance shrinks, because the loan sizes off the appraised value. A property you expected to appraise at $200,000 that comes in at $180,000 gives you $15,000 less at a 75% LTV, and that money stays trapped in the deal. Build your after-repair value from conservative comps so a soft appraisal does not break the plan.
Does the property need a tenant before I refinance?
It depends on the program. Some lenders want an executed lease in place, while others will qualify on an appraiser market-rent analysis for a property that is ready to rent. Having a signed lease generally makes the file cleaner. Ask before you schedule the appraisal so the timing works.
Can I use a DSCR loan as my BRRRR refinance?
Yes, and it is a common exit. A DSCR loan qualifies on the finished property rent against its payment, so your personal income never enters the file. That matters on a BRRRR, since investors running several projects often have tax returns that understate what they earn.
How long does one BRRRR cycle usually take?
The rehab period plus the seasoning wait plus the refinance itself. Investors often plan for several months end to end, and the timeline stretches when contractors slip or the appraisal has to be reordered. Every extra month adds interest and holding costs, so the calendar is part of the return.
The refinance decides the deal.
Run the real numbers with the desk. The refinance qualifies on the property rent, with no tax returns in the file.
60 seconds · No documents · No tax returns