BRRRR calculator
Run the numbers on a BRRRR deal: buy, rehab, rent, refinance, repeat. Enter what you pay for the property and the work, what it is worth after the repairs, the refinance terms and the rent. The results show how much cash the refinance hands back, how much stays in the deal, and the cash flow and cash on cash return on what stays in.
Your results
EstimateCash left in the deal: $10,000.00
- Total cash invested
- $185,000.00
- Refinance loan
- $180,000.00
- Cash back at the refinance
- $175,000.00
- Monthly loan payment
- $1,197.54
- Monthly cash flow
- $102.46
- Cash on cash return
- 12.29%
- Equity after the refinance
- $60,000.00
Results are estimates for planning only. They are not legal, tax or investment advice, and they apply no state or local rules. Check your lease, your local laws and a qualified professional before you rely on a number.
How the BRRRR numbers are calculated
Cash left in the deal = (price + purchase closing costs + rehab + holding costs) - (after repair value x loan to value - refinance closing costs)
Everything you pay before the refinance is the cash invested: the price, the closing costs at purchase, the rehab and the holding costs while the work is done. The calculator counts the purchase as if it were paid in cash. If you bought with a short-term loan, the refinance pays that loan off first, so the result comes out the same.
The refinance lends a share of the after repair value, the loan to value. Take off the refinance closing costs and you have the cash back. Cash invested minus cash back is the cash left in the deal. With $185,000 in and a 75% loan on a $240,000 value, the loan is $240,000 x 75% = $180,000 and the cash back is $180,000 - $5,000 = $175,000, leaving $10,000 in.
Cash flow is rent after vacancy, less operating expenses, less the payment on the new loan. Cash on cash return divides a year of that cash flow by the cash left in. When the refinance hands back everything you put in, no cash is left in, the return has no finite value, and the calculator shows a note in its place.
Worked example
A single-family house bought for $140,000 with $4,000 of closing costs, $36,000 of rehab and $5,000 of holding costs. After the work it is worth $240,000. The refinance is 75% of that value at 7% over 30 years with $5,000 of closing costs. It rents for $2,000 a month with 5% vacancy and $600 a month of operating expenses.
- Cash invested: $140,000 + $4,000 + $36,000 + $5,000 = $185,000.
- Refinance loan: $240,000 x 75% = $180,000. Cash back: $180,000 - $5,000 = $175,000.
- Cash left in the deal: $185,000 - $175,000 = $10,000.
- Monthly loan payment on $180,000 at 7% over 30 years: $1,197.54.
- Monthly cash flow: $2,000 x 95% = $1,900, less $600 of expenses is $1,300, less the $1,197.54 payment is $102.46.
- Cash on cash return: a year of cash flow, $1,229.47, over the $10,000 left in, is 12.29%.
The deal leaves $10,000.00 of cash in, with a monthly cash flow of $102.46 and a cash on cash return of 12.29%.
Frequently asked questions
What does BRRRR stand for?
Buy, rehab, rent, refinance, repeat. You buy a property that needs work, fix it up, rent it out, refinance it at its new value to take cash back out, and use that cash on the next property.
How much will a lender lend on the refinance?
It depends on the lender and the loan. Many cash-out refinances on rental property lend around 70% to 75% of the appraised value, and many lenders ask you to own the property for a set period before they use the new value. Check the terms with your lender before you count on a number.
How do I estimate the after repair value?
Look at recent sales of similar properties nearby that are in the condition yours will be in after the work. An appraisal at the refinance sets the value the lender uses, so a conservative estimate leaves room if it comes in lower.
What happens if the appraisal comes in low?
The loan is a share of the appraised value, so a lower value means a smaller loan and less cash back. If the appraisal comes in at $220,000 against the $240,000 you planned on, a 75% loan is $165,000, which is $15,000 less than $180,000, and that $15,000 stays in the deal.
What are holding costs?
What the property costs you between the purchase and the refinance while it earns no rent: property taxes, insurance, utilities and interest on any short-term loan. A longer rehab means more of them.
Track the rehab and the rent in one place
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