BRRRR Calculator

People also ask

What is a BRRRR calculator?

A BRRRR calculator models the buy, rehab, rent, refinance, repeat strategy in one pass. It totals your all-in cost (purchase, closing, rehab, and holding), sizes the cash-out refinance from ARV and lender LTV, and reports how much capital you recover, how much cash stays stuck in the deal, and whether stabilized rent covers the new mortgage with positive cash flow and an acceptable DSCR.

How does the BRRRR strategy work?

You buy a distressed property below market value, renovate it to raise both rent and appraised value, place a tenant, then take a cash-out refinance against the new value, typically 70% to 75% LTV. The refinance returns most or all of your invested cash while you keep the property, its cash flow, and its equity. That recovered cash then funds the next deal, letting one pool of capital acquire multiple rentals.

What does "cash left in deal" mean?

Cash left in deal is your all-in cost minus what the refinance returns. If you spend $166,000 buying and rehabbing a property and the cash-out refi nets you $163,250 after closing costs, only $2,750 of your capital remains tied up. Post-refi cash-on-cash return is calculated against that number, which is why successful BRRRR deals show very high, sometimes infinite, returns on remaining cash.

What is a perfect BRRRR?

A perfect BRRRR recovers 100% or more of the invested capital at the refinance while the property still cash flows. That requires the all-in cost (purchase plus rehab plus holding) to land at or below the refinance LTV percentage of ARV, usually 75%. When cash left in deal reaches zero, the cash-on-cash return is effectively infinite, and this calculator labels it that way rather than showing a misleading number.

What is the 75% rule in BRRRR?

The 75% rule says your total investment: purchase price, closing costs, rehab, and holding, should not exceed 75% of the after repair value. Since most cash-out refinances lend 75% of appraised value, meeting the rule means the new loan can return essentially all of your capital. This calculator shows your all-in cost as a percentage of ARV so you can see how close you are to the buy box.

What LTV can I get on a BRRRR cash-out refinance?

In 2026, most DSCR lenders and conventional investment-property cash-out refinances allow 70% to 75% of appraised value, with the best pricing at 70% or below. Some portfolio lenders stretch to 80% at meaningfully higher rates. Remember that DSCR lenders also cap the loan at whatever payment the rent can cover, so a weak DSCR can shrink the loan below the LTV math.

How long do I have to wait to refinance after buying (seasoning)?

It depends on the lender. Many DSCR lenders will refinance at the new appraised value after 3 to 6 months of ownership; conventional loans historically required 6 to 12 months for a cash-out based on appraised value rather than purchase price. Seasoning matters because you carry holding costs and short-term financing the whole time, so confirm the requirement before you buy.

Why is my post-refi cash flow negative?

Pulling the maximum cash out means carrying the maximum loan. At 75% of ARV and 2026 rates around 7% to 7.5%, the new payment is often close to what the stabilized rent can support. If your cash flow is negative, options include refinancing at a lower LTV (leaving more cash in but shrinking the payment), pushing rent with the rehab scope, or finding a deal with a stronger rent-to-ARV ratio. Recovering all your cash while losing money monthly is not a win.

Is BRRRR still viable in 2026?

Yes, but the margins are thinner than the 2015 to 2021 era. Higher rates mean refi payments consume more rent, and DSCR requirements often cap loans below the full 75% LTV. Deals that work in 2026 tend to be in lower-priced markets with strong rent-to-value ratios, with heavy value-add rehabs that force meaningful appreciation. The math, all-in at or below 75% of ARV with a 1.1x+ DSCR, matters more than ever.

What are the biggest risks in a BRRRR deal?

The four big ones are: the appraisal coming in under your ARV estimate, which shrinks the refi; rehab overruns, which raise your all-in cost; rate movement between purchase and refinance, which cuts the loan a DSCR lender will size; and extended vacancy or seasoning delays, which pile up holding costs. Conservative ARV comps and a 10% to 20% rehab contingency are the standard defenses.

BRRRR vs fix and flip, which is better?

A flip converts the forced appreciation into taxable profit now (usually at ordinary income rates) and ends your exposure. BRRRR keeps the property, converts the same forced appreciation into refinanced capital plus ongoing rent, and defers tax. Flips suit investors who want cash income; BRRRR suits investors building a rental portfolio. Many investors run both, flipping the deals whose numbers cannot survive a 75% LTV mortgage.