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Buy, rehab, rent, refinance

BRRRR Calculator

The whole point of BRRRR is getting your cash back out. This shows exactly how much comes back at refinance and how much stays tied up.

Buy & rehab
$
$
$
months
$
Taxes, insurance, utilities while vacant
Short-term financing
$
Hard money or private loan; 0 if paying cash
%
Interest-only
%
Refinance
$
%
%
years
%
Percent of the new loan
Rental
$
%
$
Taxes, insurance, maintenance, reserves, management
Cash left in the deal
 
After the refinance pays off the initial loan
Cash flow / mo
 
Cash-on-cash
 
Equity after refi
 
All-in % of ARV
 
All-in cost
Holding costs
Initial loan interest
Initial loan points
Cash invested before refi
New refinance loan
Refinance closing costs
Cash returned at refi
New mortgage (P&I)

How this calculator works

All-in cost = price + closing + rehab + holding costs + initial loan interest + points Cash invested before refi = all-in cost − initial loan Refinance loan = ARV × loan-to-value Cash returned = refinance loan − refinance costs − initial loan payoff Cash left in deal = cash invested before refi − cash returned

If cash left in the deal is zero or negative, you recovered everything you put in and the property is producing cash flow on none of your money. That is the "infinite return" BRRRR investors aim for.

The all-in percentage is the number to watch

If your refinance lender lends 75% of ARV, your all-in cost needs to land at or below roughly 75% of ARV, minus refinance closing costs, to pull all your cash out. Over-budget rehabs and longer holds are what push deals past that line.

Seasoning

Many lenders require you to own the property for a period, often six to twelve months, before they lend on the new appraised value rather than your purchase price. Check this before you count on a fast refinance.

Frequently asked questions

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat. You buy a property below its potential value, improve it, rent it out, then refinance based on the higher value to pull your cash back out and do it again.

What loan-to-value do refinance lenders offer?

Cash-out refinances on investment properties commonly range from 70% to 75% of appraised value. Some DSCR lenders go to 75% or 80% with stronger credit. Use your lender's actual number.

What if the appraisal comes in low?

Your refinance loan shrinks and more cash stays in the deal. Lower the ARV field to test a conservative appraisal before you buy.

Does this include rehab loan draws?

No. It assumes the full initial loan amount is outstanding for the whole holding period, which is conservative. If your lender funds rehab in draws, your actual interest will be a little lower.

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Results are estimates based on the numbers you enter and simplified assumptions. They are not financial, tax, lending or legal advice. Confirm figures with your lender, accountant, attorney or the relevant county before you commit money.