BRRRR Calculator

Analyze a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) deal to understand your total investment, cash-out potential, and return on investment. This tool is essential for real estate investors using this strategy.

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  • Purchase Price ($): The price you pay to acquire the property.
  • Rehab Costs ($): Your total budget for all renovations and repairs.
  • After Repair Value (ARV) ($): The estimated market value of the property *after* all renovations are complete. This is the most critical number in your analysis.
  • Monthly Rent ($): The gross monthly rent you expect to collect.
  • Operating Expenses (%): An estimate of all your annual expenses (property taxes, insurance, maintenance, vacancy, property management) as a percentage of your gross rental income. A 50% estimate is common for beginners (the "50% Rule").
  • Refinance LTV (%): The Loan-to-Value ratio the lender will give you on your cash-out refinance. This is typically 70-75% of the ARV for investment properties.
  • Refinance Interest Rate & Loan Term: The terms of your new loan after the refinance is complete.

Interpreting Your Results

The results will show you the financial viability of your BRRRR deal.

  • Total Cash Invested: This is your initial out-of-pocket cost (down payment + rehab costs).
  • Cash Out from Refinance: The total loan amount you receive from the new mortgage based on the ARV.
  • Total Cash Left in Deal: This is the holy grail of the BRRRR method. It's your initial cash investment minus the cash you pulled out in the refinance. A low number (or even a negative number, meaning you pulled out more than you put in) is the goal.
  • Cash on Cash ROI: This is your annual pre-tax cash flow divided by the total cash left in the deal. If you leave very little cash in the deal, your ROI can be extremely high, often called an "infinite return."