BRRRR calculator
Enter the purchase, rehab, ARV, and refinance terms. See how much cash comes back at the refi, what stays in the deal, and the cash flow after — no signup, no email.
Assumes a cash purchase and ignores refi closing costs. Most lenders want 6+ months of seasoning before a cash-out refinance — varies by lender and program; confirm with yours.
How the BRRRR math works
The whole strategy hinges on one number: how much of your cash comes back at the refinance. You buy and rehab with cash, the lender sizes a new loan off the after-repair appraisal, and whatever the loan doesn't return stays in the deal as your real investment.
With the defaults above: a $115,000 purchase plus $35,000 of rehab and $6,000 of holding costs is $156,000 of cash in. A $200,000 ARV at 75% LTV supports a $150,000 loan, so $6,000 stays in the deal and you hold $50,000 of equity. The payment on that loan at 7.5% over 30 years is about $1,049; rent of $1,750 less $625 of expenses and the payment leaves about $76 a month, a 15.2% cash-on-cash return on the cash still in.
In practice the refinance itself costs money too, typically 2–5% of the loan, so shave that off your cash out. The two inputs that make or break the deal are covered in after-repair value explained and the BRRRR strategy; the full process is in how to underwrite a BRRRR, and you can screen the purchase price with the 70% rule calculator.
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property below market, renovate it, place a tenant, refinance based on the new appraised value, and use the returned capital for the next deal.
What counts as a good BRRRR result?
A common rule of thumb is leaving $10–15k or less in the deal, and a perfect BRRRR returns every dollar. Judge it together with the cash flow: pulling all your cash out of a property that loses $200 a month is a worse outcome than leaving $12,000 in one that carries itself.
Do banks really refinance at 75% LTV?
70–80% is the typical range for investment-property cash-out refinances, with 75% the most common quote. Terms vary by lender and program, and most want 6+ months of seasoning before lending on the appraised value instead of your purchase price — confirm with yours.
Where do BRRRR deals go wrong?
Two places: the ARV comes in lower than projected, and the rehab runs over budget. Both errors compound at the refinance, since the loan is sized off the appraisal; a $20,000 ARV miss at 75% LTV means $15,000 more cash stuck in the deal. Build the ARV from sold comps of renovated homes and add a 10–15% contingency to the rehab budget.
The refi only works if the ARV holds. CapScout pulls the comps and models the full BRRRR, from purchase to refinance, on any listing.
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