How to Use a BRRRR Calculator
A BRRRR calculator is the essential tool for modeling the Buy, Rehab, Rent, Refinance, Repeat strategy before committing capital. It tells you whether a deal will achieve the goal of recovering your investment through the refinance while producing positive cash flow on the back end.
This guide explains what inputs you need, how to interpret the results, and how to use the calculator to make better acquisition decisions.
The Key Inputs
Purchase Price
The acquisition cost of the property. BRRRR deals typically require buying below market value to create enough equity for the refinance to work.
Rehab Budget
The total renovation cost to bring the property to rent-ready and appraised condition. Include materials, labor, permits, and a 10-20% contingency buffer.
After-Repair Value (ARV)
The estimated market value of the property after renovations. This is the most critical number because it determines how much you can pull out during refinance. Use comparable sales within the last 6 months and within a half-mile radius.
Refinance Loan-to-Value (LTV)
Most DSCR lenders offer 70% to 80% LTV on cash-out refinances. A 75% LTV on a $240,000 ARV means a maximum new loan of $180,000.
Interest Rate and Loan Term
The rate and amortization period on the new long-term loan. These determine your monthly payment and whether the property will cash flow after refinance.
Monthly Rent
The expected rental income. Use market comparables or an existing lease.
Operating Expenses
Taxes, insurance, management, maintenance, vacancy, and reserves.
What the Calculator Tells You
Cash Left in Deal
Total investment (purchase + rehab + closing costs) minus the refinance loan amount. The goal is to get this number as close to zero as possible. A negative number means you pulled out more than you put in (infinite return).
Monthly Cash Flow After Refinance
Rent minus expenses minus the new mortgage payment. This must be positive for the deal to work long-term.
DSCR After Refinance
NOI divided by the new annual debt service. Needs to be above 1.0 for the refinance loan to qualify. Above 1.25 gets the best rates.
Cash-on-Cash Return
Annual cash flow divided by the cash left in the deal. If you left $10,000 in the deal and earn $3,600/year, your cash-on-cash return is 36%.
Equity Position
ARV minus the new loan balance. This is your built-in wealth from the forced appreciation strategy.
Example BRRRR Analysis
- Purchase: $160,000
- Rehab: $40,000
- Closing costs (buy + refi): $12,000
- Total invested: $212,000
- ARV: $260,000
- Refi at 75% LTV: $195,000
- Cash left in deal: $17,000
- Monthly rent: $2,100
- Monthly expenses: $700
- New mortgage: $1,365
- Monthly cash flow: $35
- DSCR: 1.02
This deal recovers $195,000 of the $212,000 invested, leaving $17,000 in the property. Cash flow is minimal but positive, and the investor owns a property with $65,000 in equity.
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Model your next BRRRR deal with our free calculator. Enter your numbers and see the full picture instantly.
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