Model the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). Calculate cash left in the deal after refinancing at 75% ARV and determine infinite return potential.
The BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — is one of the most powerful wealth-building methods in real estate. The goal is to purchase a distressed property below market value, renovate it to increase value, rent it out for cash flow, refinance to pull out most or all of your invested capital, then repeat the process with the recycled funds.
The key metric is how much cash remains in the deal after refinancing. In an ideal BRRRR, you refinance at 75–80% of the after-repair value (ARV), recovering all of your purchase and rehab costs, effectively owning a cash-flowing rental property with zero (or near-zero) money left in the deal — approaching infinite return on investment.
This calculator models every stage of the BRRRR process: acquisition cost, rehab budget, post-rehab rental income, refinance at a chosen LTV, and the resulting cash left in the deal, monthly cash flow, and return metrics.
BRRRR requires precise numbers at every stage. Overpaying for the property, underestimating rehab costs, overestimating ARV, or not achieving target rents can turn an "infinite return" deal into a cash trap. This calculator runs the full BRRRR analysis so you can underwrite deals with confidence before you commit. Instant recalculation lets you compare scenarios side by side, so every buying, selling, or investment decision is grounded in solid financial analysis.
Total Investment = Purchase Price + Rehab Costs + Closing/Holding Costs Refinance Amount = ARV × LTV% Cash Returned = Refinance Amount − Refinance Closing Costs Cash Left in Deal = Total Investment − Cash Returned Monthly Mortgage = standard amortization on refinance amount Monthly Cash Flow = Rent − Mortgage Payment − Operating Expenses Cash-on-Cash Return = (Annual Cash Flow / Cash Left in Deal) × 100
Result: Cash Left in Deal = $5,250
Total investment: $150,000 + $40,000 + $7,500 (closing/holding at ~4%) = $197,500. Refinance: $250,000 × 75% = $187,500, minus $4,750 closing costs = $182,750 returned. Cash left: $197,500 − $182,750 ≈ $14,750. Monthly mortgage: ~$1,311 on $187,500 at 7.5%/30yr. Cash flow: $2,000 − $1,311 − $500 = $189/month ($2,268/year). CoC return: $2,268 / $14,750 = 15.4%.
Buy: Find a property 20–40% below ARV. Rehab: Renovate to market standards (not over-improve). Rent: Screen tenants carefully and place at market rent. Refinance: Cash-out refinance at 75–80% ARV after 6–12 months seasoning. Repeat: Deploy returned capital into the next deal. Each stage requires discipline and accurate numbers.
The most common BRRRR failure is overpaying for the property. If your purchase price is too high, no amount of rehab will create enough equity for a clean refinance. Other pitfalls include underestimating rehab costs (always pad 15–20%), overestimating ARV (use conservative comps), underestimating holding costs during rehab, and not accounting for seasoning requirements.
The power of BRRRR is compounding: if you recover 100% of your capital on each deal, you can theoretically buy unlimited properties with the same pool of money. In practice, most investors retain some capital per deal. With $100,000 in starting capital and $10,000 left per BRRRR, you can acquire 10 properties before needing fresh capital — each producing cash flow and appreciation.
BRRRR stands for Buy (purchase below market value), Rehab (renovate to increase value and rentability), Rent (place a tenant for cash flow), Refinance (cash-out refi to recover invested capital), Repeat (use the returned capital to purchase the next property). It's a systematic approach to scaling a rental portfolio.
The 75% rule states your total all-in cost (purchase + rehab + closing/holding costs) should be at or below 75% of the after-repair value (ARV). This ensures that when you refinance at 75% LTV, you recover all or most of your invested capital. It's the core underwriting criterion for BRRRR deals.
Cash left in deal is the amount of your original investment that remains tied up in the property after refinancing. Ideally, this is zero or negative (meaning you pulled out more than you invested). Lower cash left in deal means higher return on invested capital and more funds available for the next BRRRR.
Many BRRRR deals leave some cash in the deal — that's okay as long as the cash-on-cash return on the remaining capital is strong (10%+). Perfect zero-cash-left deals are the goal but not the requirement. A BRRRR with $15,000 left in a property earning $2,500/year (16.7% CoC) is still excellent.
Most BRRRR rehabs take 1–4 months for light renovations and 3–6 months for major gut rehabs. Longer rehabs increase holding costs (loan payments, insurance, utilities) and delay refinancing. Experienced BRRRR investors target 2–3 month rehab timelines with well-managed contractor teams.
The initial purchase is often financed with hard money or private money (short-term, high-rate loans designed for flips/rehabs). After rehab and renting, you refinance into a conventional or DSCR loan with better long-term rates. Some investors use HELOCs or cash for the purchase and rehab phases.