BRRRR Calculator Examples
Example 1: Full Capital Recycle
Purchase: $120,000 | Rehab: $35,000 | ARV: $200,000 | Refi @ 75% LTV: $150,000
Total Cash-In: $155,000 | Cash Left in Deal: $5,000 | Monthly Cash Flow: ~$380
Assumptions: 7.5% interest, 30-year term, 75% refinance LTV on ARV, monthly rent $1,850, monthly expenses $420 (taxes, insurance, management, reserves). Monthly P&I about $1,049; DSCR about 1.36. Illustrative only, not a quote.
Nearly a full recycle - investor gets back ~97% of capital and holds a cash-flowing rental.
Example 2: Moderate Equity Play
Purchase: $180,000 | Rehab: $30,000 | ARV: $240,000 | Refi @ 75% LTV: $180,000
Total Cash-In: $210,000 | Cash Left in Deal: $30,000 | Monthly Cash Flow: ~$290
Assumptions: 7.5% interest, 30-year term, 75% refinance LTV on ARV, monthly rent $2,100, monthly expenses $550 (taxes, insurance, management, reserves). Monthly P&I about $1,259; DSCR about 1.23. Illustrative only, not a quote.
Good equity position - recycles most capital and builds long-term wealth through appreciation.
Example 3: Multi-Unit BRRRR
Purchase: $280,000 | Rehab: $55,000 | ARV: $420,000 | Refi @ 75% LTV: $315,000
Total Cash-In: $335,000 | Cash Left in Deal: $20,000 | Monthly Cash Flow: ~$720
Assumptions: 7.5% interest, 30-year term, 75% refinance LTV on ARV, monthly rent $3,900, monthly expenses $975 (taxes, insurance, management, reserves). Monthly P&I about $2,203; DSCR about 1.33. Illustrative only, not a quote.
Strong multi-unit BRRRR - near-full recycle with cash flow that can support a DSCR refinance, subject to lender review.
BRRRR Strategy Tips
To maximize capital recycle, target these benchmarks:
- Buy + Rehab at or below 75% of ARV so the refi covers your all-in cost
- Rent should comfortably cover PITI plus a vacancy buffer (DSCR at least 1.10)
- Use DSCR refinance loans - no W-2 or tax returns required for most programs
- LLC eligibility available on most DSCR refi programs
If your cash left in the deal exceeds 25% of ARV, consider increasing rental income, reducing rehab scope, or negotiating a lower purchase price before refinancing.
BRRRR Calculator FAQs
What does BRRRR stand for in real estate?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Investors purchase distressed properties, renovate them, rent them out, refinance to pull out equity, and repeat the cycle with recycled capital.
How do you calculate BRRRR cash-on-cash returns?
Cash-on-cash return = Annual Net Cash Flow divided by Cash Left in Deal after refinancing. If you have $10,000 left in a deal generating $2,400/year net, your cash-on-cash return is 24%.
How much can I refinance in a BRRRR deal?
Most DSCR refinance programs allow up to 75-80% LTV on the after-repair appraised value. To fully recycle capital, your all-in cost should be at or below that LTV threshold on the ARV.
What is a good cash left in the deal number?
Investors typically target $0-$10,000 for a full or near-full capital recycle. Leaving 10-15% of the purchase price in the deal is acceptable if cash flow is strong and the property fits long-term portfolio goals.
Does DSCR matter for BRRRR refinance loans?
Yes. The refinance step in a BRRRR deal typically uses a DSCR loan, qualifying the property on rental income rather than personal income. Requirements vary by lender and program; many DSCR programs look for a DSCR of roughly 1.0-1.25 or higher. This calculator estimates your DSCR as part of the analysis.
