BRRRR Method Calculator
Model a full Buy, Rehab, Rent, Refinance, Repeat deal: cash needed, equity created, cash-out refi, cash-on-cash return, and long-term ROI.
Deal Inputs
1. Buy
2. Rehab
3. Rent
4. Refinance
Results Summary
Cash In & Equity
Total project cost:$0
Initial loan amount:$0
Total cash invested:$0
ARV:$0
Equity at ARV:$0
Refinance & Cash Out
Max refi loan (LTV × ARV):$0
Cash-out from refi:$0
Net cash left in deal:$0
Monthly refi payment (P&I):$0
Cash Flow
Gross monthly rent:$0
Vacancy allowance:$0
Operating expenses:$0
Net operating income (NOI) / month:$0
Monthly cash flow after debt:$0
Returns
Cash-on-cash return (year 1):0%
Annual cash flow:$0
Equity multiple (equity ÷ cash left in):–
Payback period (years):–
Note: This tool is for educational planning only and does not constitute financial, tax, or legal advice. Always verify numbers with your lender, contractor, and local professionals.
What is the BRRRR Method?
The BRRRR method stands for Buy, Rehab, Rent, Refinance, Repeat. It is a leveraged real estate investing strategy where you:
- Buy an underpriced or distressed property.
- Rehab it to increase value and rentability.
- Rent it out to generate stable income.
- Refinance based on the higher after-repair value (ARV).
- Repeat by using the cash-out proceeds to fund the next deal.
The goal is to recycle your initial cash as much as possible, ending up with a cash-flowing rental and little or no money left in the deal.
How this BRRRR calculator works
This calculator models the full BRRRR lifecycle in four blocks:
1. Buy
We estimate your total acquisition cost and how much cash you need up front.
Total project cost = Purchase price + Purchase closing costs + Rehab costs + Holding costs
Initial loan amount = Purchase price × Purchase LTV
Total cash invested = Total project cost − Initial loan amount
2. Rehab
Rehab costs plus monthly holding costs (taxes, insurance, utilities, interest, etc.) are added to your total project cost:
Holding costs = Holding months × Monthly holding costs
3. Rent
We estimate net operating income (NOI) and cash flow based on rent, vacancy, and operating expenses.
Vacancy allowance = Rent × Vacancy %
Operating expenses = Rent × Operating expense %
NOI (monthly) = Rent − Vacancy allowance − Operating expenses
4. Refinance
We calculate the maximum refinance loan based on ARV and refi LTV, then estimate your new mortgage payment and cash-out.
Max refi loan = ARV × Refi LTV
Cash-out from refi = Max refi loan − Initial loan amount
Cash left in deal = Total cash invested − Cash-out from refi
Monthly refi payment uses the standard amortization formula:
Payment = \( P \times \dfrac{r}{1 - (1 + r)^{-n}} \)
where \(P\) = refi loan, \(r\) = monthly interest rate, \(n\) = total number of payments.
5. Returns
Finally, we estimate your cash-on-cash return, equity multiple, and payback period.
Monthly cash flow = NOI (monthly) − Monthly refi payment
Annual cash flow = Monthly cash flow × 12
Cash-on-cash return = Annual cash flow ÷ Cash left in deal
Equity multiple = Equity at ARV ÷ Cash left in deal
Payback period = Cash left in deal ÷ Annual cash flow
Interpreting your BRRRR results
Cash left in deal
This is the most-watched BRRRR metric. In an ideal “infinite return” scenario, your cash left in deal is close to $0 after the refinance. In practice, many investors are happy with:
- $0–$10k left in for smaller single-family deals.
- 5–15% of ARV left in for larger or riskier projects.
Cash-on-cash return
Cash-on-cash (CoC) return tells you how hard your remaining cash is working:
- < 8%: weak for a leveraged BRRRR deal in many markets.
- 8–15%: typical for solid long-term rentals.
- 15%+: strong BRRRR, assuming risks are manageable.
Equity and risk
Even if you pull most of your cash back out, you still want a healthy equity cushion after the refi. Many lenders and investors target:
- Refi LTV of 70–75% of ARV.
- Stress-tested cash flow assuming higher vacancy or expenses.
Common BRRRR pitfalls to stress-test
- Overestimating ARV: Run comps conservatively and test a lower ARV in the calculator.
- Underestimating rehab: Add a contingency (10–20%) to rehab and holding costs.
- Refi terms changing: Lenders may offer lower LTV or higher rates than expected.
- Rent overestimates: Use realistic market rents and account for local regulations.
Who should use this BRRRR calculator?
This tool is useful for:
- New investors learning how the BRRRR method works.
- Experienced investors quickly screening multiple deals.
- Agents, lenders, or wholesalers preparing simple deal summaries.
Always pair this with detailed due diligence, professional inspections, and advice from qualified financial and legal professionals.