BRRRR Calculator

Last updated: July 2026

Free BRRRR strategy calculator for real estate investors. Instantly calculate cash-out refinance proceeds, cash-on-cash return, infinite return, and total project ROI for the Buy-Rehab-Rent-Refinance-Repeat method.

Buy Phase

$
$
Title, inspection, lender fees

Rehab Phase

$
All renovation costs
$
Interest, taxes, insurance, utilities during rehab

Refinance Phase

$
Estimated appraised value after rehab
%
Typical: 70-75% for DSCR loans
%
years
$
Appraisal, title, lender fees (~2-3% of loan)

Rent Phase

$
%
Typical: 5-10%

Operating Expenses (Monthly)

$
$
$
Typical: 8-10% of rent
$
Typical: 5% of rent
Capital Left in Deal
$0
Infinite return achieved!
Total Project Cost
$165,000
Refi Loan Amount
$157,500
Cash Out at Refi
$152,500
Monthly Cash Flow
$681
Cash-on-Cash Return
Total ROI (Equity)
155%

Calculation Breakdown

Purchase Price $120,000
Total Investment (Buy + Rehab + Hold) $165,000
ARV × LTV $157,500
Refi Loan Amount $157,500
Refi Closing Costs $5,000
Net Cash from Refi $152,500
Monthly P&I Payment $1,100
Annual Cash Flow $8,172
Equity Created (ARV − Refi Loan) $52,500
Estimates only. Actual loan terms, ARV, and expenses vary. The BRRRR strategy involves risk — always stress-test with conservative numbers and consult professionals.

What is the BRRRR Strategy?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investing strategy that lets you build a rental portfolio while recycling your capital — ideally putting little to none of your own money into each deal after the first one.

The 5 Steps

  1. Buy: Purchase a distressed or under-market property (often with cash, hard money, or a short-term bridge loan)
  2. Rehab: Renovate the property to increase its value and make it rent-ready
  3. Rent: Find a tenant and establish rental income
  4. Refinance: Get a long-term loan (DSCR, conventional, or portfolio) based on the new appraised value — ideally pulling all your invested capital back out
  5. Repeat: Use the refinance proceeds to fund the next BRRRR deal

The Math Behind BRRRR

The goal is to buy low enough and add enough value through rehab that the new appraised value (ARV) supports a refinance large enough to repay your entire investment:

Cash Out = (ARV × LTV) − Existing Loan − Refi Closing Costs
Capital Left in Deal = Total Investment − Cash Out

When Capital Left in Deal ≤ $0, you've achieved infinite return — you own the property, collect monthly cash flow, and have $0 of your own money tied up.

The 70% Rule

Most BRRRR investors use the 70% rule as a quick filter:

Max Purchase Price = (ARV × 70%) − Rehab Costs

This ensures enough margin to cover rehab, holding costs, closing costs, and still pull most (or all) of your capital out at refinance. In some markets, investors use 75% or 80% instead of 70%.

How to Use This Calculator

Enter your purchase price, rehab budget, holding costs, ARV, refinance LTV and rate, and expected rent/expenses. The calculator instantly shows:

  • How much capital you'll have left in the deal after refinance
  • Your monthly cash flow after the refinance payment
  • Cash-on-cash return (infinite if you pull all capital out)
  • Total ROI including equity created
  • Full calculation breakdown

Frequently Asked Questions

What is the BRRRR strategy?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investing strategy where you purchase a distressed property, renovate it, rent it out, refinance it based on the new appraised value to pull your capital back out, and then repeat the process with the next property.

What is a good BRRRR cash-on-cash return?

Most investors target a cash-on-cash return of 12% or higher on BRRRR properties. However, the true power of BRRRR is measured by infinite return — when you've pulled 100% of your invested capital back out, your cash-on-cash return becomes infinite because you have $0 left in the deal.

How much cash can I pull out in a BRRRR refinance?

Typically, lenders allow a cash-out refinance at 70-75% of the appraised after-repair value (ARV). For example, if the property appraises for $200,000 after rehab, you can typically refinance up to $150,000 (75% LTV). If your total investment was $140,000, you'd pull $150,000 out — recouping all your capital plus $10,000 tax-free.

What is the 70% rule in BRRRR?

The 70% rule is a guideline: Maximum Purchase Price = (ARV × 70%) − Rehab Costs. This ensures enough margin to cover rehab, closing costs, and still pull most of your capital out at refinance.

How long does the BRRRR process take?

A typical BRRRR cycle takes 6-12 months: 1-2 months to buy, 2-4 months to rehab, 1-2 months to rent and season, 1-2 months to refinance. Seasoning requirements for most lenders are 6-12 months.

What is infinite return in BRRRR?

Infinite return occurs when you've refinanced and pulled 100% (or more) of your invested capital back out. Since you have $0 invested but still own the property and collect monthly cash flow, your return on invested capital is mathematically infinite.

Do I need a DSCR loan for BRRRR?

Not necessarily. The refinance step can use any investment property loan. However, DSCR loans are popular for BRRRR because they don't require personal income verification. Check our DSCR calculator to see if your property qualifies.

What are the biggest risks of BRRRR?

The biggest risks are: rehab costs overrunning budget, ARV coming in lower than expected, not being able to refinance due to seasoning or market changes, not finding a tenant quickly, and interest rates rising during the hold period. Always stress-test with conservative numbers.

Important Disclaimer

This BRRRR calculator provides estimates for educational and informational purposes only. Results are based on the inputs you provide and standard real estate formulas. Actual loan terms, appraised values, rehab costs, rental income, and market conditions vary significantly. The BRRRR strategy involves substantial financial risk.

This site is not a lender, broker, financial advisor, or real estate professional. We do not collect personal information or make investment decisions. For personalized advice, consult qualified professionals.