BRRRR Method Calculator

Analyze each step: Buy, Rehab, Rent, Refinance, Repeat.

1 Buy

2 Rehab

3 Rent

4 Refinance

Most lenders: 75% of ARV

Money Left in Deal

$0

0% of total invested

Cash-on-Cash Return

0%

on money left in deal

Total Invested

$0

Refi Loan Amount

$0

Cash Back at Refi

$0

Deal Quality

Monthly Cash Flow Breakdown

BRRRR Steps Summary

What is the BRRRR Method?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investment strategy that allows investors to recycle their capital across multiple properties by pulling out their initial investment through refinancing.

The 5 Steps

  1. Buy: Purchase a property below market value (distressed, foreclosure, motivated seller)
  2. Rehab: Renovate to increase the property's value to its After Repair Value (ARV)
  3. Rent: Find tenants and stabilize rental income
  4. Refinance: Get a new loan based on the higher ARV (typically 75% LTV), pulling out most or all of your initial investment
  5. Repeat: Use the cash you pulled out to buy the next property

The 75% ARV Rule

Most lenders will refinance at 75% of the appraised value (ARV). For the BRRRR method to work optimally, your total investment (purchase + rehab + closing costs) should be at or below 75% of the ARV. This allows you to pull out all your cash at refinancing.

Key Metrics

  • Money Left in Deal: How much of your cash remains after refinancing. Ideally $0 (you got all your money back)
  • Cash-on-Cash Return: Annual cash flow divided by money left in deal. If you got all cash back, this is technically infinite
  • Monthly Cash Flow: Rent minus all expenses (mortgage, taxes, insurance, management, maintenance, vacancy)