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BRRRR Investment Calculator
See how much of your own cash stays in a buy, rehab, rent, refinance and repeat deal.
How this calculator works
BRRRR stands for buy, rehab, rent, refinance, repeat. You buy a distressed property, renovate it, rent it out, then refinance based on its higher after-repair value (ARV) and pull your money back out to repeat the process. Enter what you paid, what the rehab cost, the expected ARV and the loan-to-value (LTV) percentage your lender allows. The calculator subtracts the refinance loan from your total cost to show the cash left in the deal, or the cash you take out beyond what you invested.
Example
You buy for $100,000, put in $30,000 of rehab, and the home appraises at $200,000. The lender refinances at 70% of that value. The calculator shows: All cash recovered, plus $10,000.00.
Tips
- Lenders for investment properties often allow a lower LTV than for a primary home. Ask your lender what percentage they will actually use.
- Your ARV must be realistic. Base it on recent nearby sales of similar renovated homes, not on hope.
- Remember holding costs and closing costs during the rehab and refinance. They are not in this simple calculation.
Common questions
What does it mean if all cash is recovered?
The refinance loan is larger than what you put into the deal. You get your money back and a little more, which you can use for the next property.
Is BRRRR risky?
It can be. If the appraisal comes in low or rates rise, you may leave more cash in the deal than planned, so test several outcomes.
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Results are estimates only. See our disclaimer.