Underwrite a Buy-Rehab-Rent-Refinance-Repeat deal: cash recovered, money left in, and your cash-on-cash return.
BRRRR works when you can pull most of your capital back out on the refi. This calculator runs the full math: all-in cost, ARV-based refi proceeds, money trapped, monthly cash flow, and the 70% rule check.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Buy, Rehab, Rent, Refinance, Repeat: recycling capital through cash-out refis.
BRRRR is a real estate investment strategy: buy a distressed property, rehab it to force appreciation, rent it for cash flow, then cash-out refinance to pull most of your capital back out, letting you "repeat" with the recovered money.
Ideally $0–$10k; the goal is to recover all capital on refinance.
A "perfect" BRRRR returns 100% of your invested capital on the refinance, leaving you with a cash-flowing property and no money tied up. Realistic deals often leave $5,000–$20,000 in, which is still excellent ROI given the cash flow + appreciation that remain.
Most lenders cash-out refi at 75% of After Repair Value.
Conventional cash-out refinances on investment properties typically max at 75% LTV of the after-repair value (ARV). To return all your capital, your purchase + rehab + closing costs must total less than 75% of ARV.
Aim for purchase + rehab + costs ≤ 70–75% of ARV.
The classic "70% rule": never pay more than 70% of ARV minus rehab. A property worth $200k after rehab needs purchase + rehab + closing ≤ $140k for the refinance math to work clean.
The mechanics in short answers. No jargon, no upsell.
A property needing meaningful work, purchased at a discount. Cash or hard-money loan upfront; banks won't conventional-finance a property in distress.
Targeted improvements that maximize appraised value: kitchen, bathrooms, flooring, paint. Track rehab spend strictly; overruns kill the math.
Stabilize the property with a paying tenant. Banks usually want 30–90 days of seasoning before they'll refi.
New conventional 30-year mortgage based on appraised ARV. Most lenders cap cash-out at 75% LTV on investment properties.
Use the cash pulled out to buy the next BRRRR. The "Repeat" is what makes the strategy a portfolio engine instead of a one-off flip.
Worked example: At the defaults ($110,000 purchase + $35,000 rehab + $7,000 closing/holding = $152,000 all-in, refinanced at 75% of a $220,000 ARV), the refi returns ≈$161,700 after 2% closing, so you pull out ≈$9,700 MORE than you put in. The new $165,000 loan at 7.5%/30 yr costs ≈$1,154/mo, leaving ≈$157/mo cash flow after 31% of rent in reserves, and the $110,000 offer passes the 70% rule (max $119,000).
Assumes the refi closes at your stated LTV with ~2% closing costs and the property rents immediately at your number; appraisal shortfalls and seasoning periods are the usual real-world haircuts. All math runs locally in your browser; your numbers never leave this page.
Designed so anyone can model their situation in under a minute, with or without a finance background.
How much capital you get back when you cash-out refi at 75% LTV.
Original cash − refinance proceeds = capital trapped. Aim for $0.
Annual cash flow ÷ remaining capital: the ROI number that matters.
New mortgage payment, taxes, insurance, vacancy, capex; this is your actual net.
See what happens to your math if ARV comes in 10% lower than expected.
Built-in test against the classic acquisition rule of thumb.
Everything you might ask before, during, or after using this tool.
Flipping: buy, rehab, sell, capturing the spread as profit. BRRRR: buy, rehab, rent, refi, keeping the property and pulling most of your capital back out. Flipping pays one-time, BRRRR pays cash flow + appreciation forever.
Typically 6–12 months end to end. Purchase + rehab: 1–4 months. Stabilize with tenant: 1–2 months. Bank seasoning: 3–6 months (most lenders require 6 months of ownership before cash-out refi). Then refinance closes.
Yes, on conforming loans (mostly Fannie/Freddie). Limits vary: 75% for 1-unit investment property, 70% for 2-4 unit. DSCR loans (commercial-style) and portfolio lenders may go higher in exchange for higher rates.
Most conforming cash-out refis require 6 months of title seasoning (you've owned the property for 6 months). Some "delayed financing" exceptions allow earlier cash-out if you bought all-cash. Always confirm with the specific lender before assuming.
Then you can't pull as much cash out, leaving more capital trapped. This is the #1 BRRRR risk. Mitigation: be conservative on ARV (use the lowest comp, not the highest), and walk away from deals where the math only works with optimistic ARV.
Cash is simpler: no carrying costs during rehab, faster close, no refi seasoning complications. Hard money lets you do more deals with less capital but adds 8–12% interest costs and tighter timelines. Most BRRRR pros use both depending on the deal.
BRRRR works best with cosmetic and minor mechanical rehabs: kitchen, bathroom, paint, flooring. Major systems (roof, HVAC, electrical, foundation) eat rehab budgets and timelines and rarely add proportional ARV. Avoid foundation issues, full re-roofs, and unpermitted additions.
A "perfect" BRRRR with $0 left in has infinite cash-on-cash return. Realistically, 15–25% cash-on-cash on remaining capital is a strong outcome. If cash-on-cash drops below 8%, the deal is mediocre; better deals exist.
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Distressed properties trade at a discount to fixed-up properties because most buyers want move-in ready. That discount is the BRRRR opportunity.
By forcing the property to ARV through rehab and then refinancing at appraised value, you're effectively selling the property to yourself at the higher number, turning sweat equity into real cash you can recycle.
The repeatability is the magic. A house-flipper makes money once per deal. A BRRRR investor builds a portfolio of cash-flowing properties using mostly the same capital over and over.
All-in cost = purchase price + rehab + closing + holding costs during rehab.
Refinance proceeds = ARV × 75% − refi closing costs − any outstanding loan being paid off.
Money left in deal = all-in cost − refinance proceeds.
Cash flow = rent − new mortgage P&I − taxes − insurance − vacancy − management − capex reserves.
Cash-on-cash return = annual cash flow ÷ money left in deal.
ARV comes in lower than expected.
Cause: optimistic comp selection during analysis. The bank's appraiser uses the most conservative comps, not the most aspirational.
Effect: cash-out is capped at 75% of a lower number, leaving meaningful capital trapped.
Mitigation: always run two ARV scenarios: your expected number and a 10% lower stress test. If the deal only works at expected, walk away.
Two short notes worth reading before you trust any number on this page.
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We are not a bank, NBFC, advisor, broker, or distributor of any financial product. The numbers shown here are estimates for educational purposes only, based on the inputs you provide.
Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
