BRRRR Strategy Calculator
Analyze the Buy, Rehab, Rent, Refinance, Repeat strategy by calculating total investment, after-repair value, cash-out refinance proceeds, and cash-on-cash return.
Buy & Rehab
Refinance
Rent
Taxes, insurance, maintenance, vacancy
Your Results
Enter deal details and click analyze.
What This Calculator Does
This BRRRR strategy calculator helps real estate investors analyze the Buy, Rehab, Rent, Refinance, Repeat method by projecting total cash invested, refinance proceeds, cash left in the deal, monthly cash flow, and cash-on-cash return. The BRRRR strategy allows investors to recycle capital by purchasing undervalued properties, adding value through renovation, renting them out, and then refinancing to pull out most or all of their initial investment for the next deal.
The Formula
Total cash invested includes the purchase price, rehab costs, and closing costs. After renovation, the property is refinanced at a percentage (LTV) of the after-repair value (ARV). The cash-out proceeds are the new loan amount minus refinance closing costs. Cash left in the deal is the difference between what you invested and what you pulled out. Cash-on-cash return measures annual cash flow relative to the capital still tied up in the property.
Step-by-Step Example
Calculate total investment
Purchase price of $150,000 plus $40,000 rehab plus $4,000 closing costs equals $194,000 total cash invested.
Determine refinance proceeds
After-repair value of $250,000 at 75% LTV gives a $187,500 loan. Subtract $3,000 in refinance closing costs for $184,500 in cash-out proceeds.
Find cash left in deal
$194,000 invested minus $184,500 cash out equals $9,500 still in the deal.
Calculate cash-on-cash return
Monthly rent of $1,800 minus $1,213 mortgage minus $400 expenses gives $187/month or $2,244/year. Cash-on-cash: $2,244 / $9,500 = 23.6%.
Real-World Use Cases
Deal Analysis
Evaluate whether a distressed property offers enough spread between purchase price and ARV to execute a profitable BRRRR.
Capital Recycling Planning
Determine how much capital you recover on each deal to plan your next acquisition without needing fresh capital.
Rehab Budget Validation
Test different rehab cost scenarios to ensure the deal still works if renovation costs exceed initial estimates.
Common Mistakes to Avoid
Overestimating the after-repair value. Always use conservative comparable sales from the past 3 to 6 months rather than optimistic projections.
Underestimating rehab costs. Add a 10% to 20% contingency buffer for unexpected issues like structural damage, code violations, or material price increases.
Forgetting the seasoning period. Most lenders require 6 to 12 months of ownership before allowing a cash-out refinance at the new appraised value.
Ignoring ongoing expenses. Property taxes, insurance, vacancy (typically 5% to 8%), maintenance, and capital expenditure reserves all reduce actual cash flow.
Frequently Asked Questions
Accuracy and Disclaimer
This calculator provides estimates based on the inputs you provide. Actual results depend on accurate property valuation, rehab cost management, lender terms, market rents, and economic conditions. Consult a real estate investment advisor and licensed appraiser before executing a BRRRR strategy.
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