BRRRR Calculator
See how much cash a buy-rehab-rent-refinance plan returns, how much stays in the deal, and whether the rent carries the new loan - including what happens if the appraisal comes in lower.
1. Buy and rehab
Closing costs, inspections and other purchase expenses.
Rehab, lease-up and any lender seasoning period.
Taxes, insurance and utilities before it is rented.
2. Short-term financing
0% for an all-cash purchase.
3. Refinance
Your estimate - the lender's appraisal decides.
4. Rent
Share of rent lost to empty months and unpaid rent.
≈ $167 at the current collected rent.
≈ $105 at the current collected rent.
≈ $105 at the current collected rent. Set aside for roofs, systems and appliances; kept below NOI.
Licensing, accounting, pest control, landscaping and similar.
Results
- All-in cost
- $222,913
- Before the refinance
- Your cash in before refinance
- $45,413
- Cash returned at refinance
- $27,500
- After paying off the short-term loan
- Cash left in the deal
- $17,913
- Equity after refinance
- $70,000
- ARV − new loan (before selling costs)
- Monthly cash flow
- -$135
- After the new payment and reserves
- DSCR
- 0.98×
- Many rental lenders look for 1.2× or more
- Cash-on-cash return
- -9.1%
- On cash left in the deal
- Purchase$150,000
- Acquisition costs$6,000
- Rehab$50,000
- Points$3,550
- Interest while holding$9,763
- Holding costs$3,600
- Operating expenses$688
- Mortgage payment$1,433
- CapEx reserve$105
Collected rent falls $135 a month short of these costs; the owner pays the difference.
If the appraisal or the lender differs
The refinance is the step you control least. These scenarios rerun the deal with the after-repair value 10% lower, as entered and 5% higher, at your refinance LTV and five points either side. They show sensitivity, not a forecast: an appraiser and a lender decide the real numbers.
| Scenario | Cash returned | Cash left in deal | Monthly cash flow | DSCR |
|---|---|---|---|---|
| ARV −10%, 70% LTV | -$6,100 | $51,513 | $94 | 1.16× |
| ARV −10%, 75% LTV | $6,500 | $38,913 | $8 | 1.09× |
| ARV −10%, 80% LTV | $19,100 | $26,313 | -$78 | 1.02× |
| ARV as entered, 70% LTV | $13,500 | $31,913 | -$40 | 1.05× |
| ARV as entered, 75% LTV | $27,500 | $17,913 | -$135 | 0.98× |
| ARV as entered, 80% LTV | $41,500 | $3,913 | -$231 | 0.92× |
| ARV +5%, 70% LTV | $23,300 | $22,113 | -$107 | 1.00× |
| ARV +5%, 75% LTV | $38,000 | $7,413 | -$207 | 0.93× |
| ARV +5%, 80% LTV | $52,700 | $0 | -$307 | 0.87× |
Cash items vs non-cash items
| Item | Type | How it is treated here |
|---|---|---|
| Operating expenses | Cash | Subtracted to get NOI. |
| Mortgage payment | Cash | $1,433/mo subtracted after NOI. About $169/mo of it in year 1 is principal - cash out, but it becomes equity rather than an expense. |
| CapEx reserve | Cash set aside | $105/mo held back for future replacements; subtracted from cash flow, kept out of NOI. |
| Depreciation | Non-cash (tax) | Not included. A tax deduction that can reduce taxable rental income, not money spent. Recaptured when you sell. |
| Appreciation | Non-cash | Not included. Changes wealth only when you sell or refinance. |
| Income taxes | Cash (yours) | Not included. All figures are pre-tax; your tax depends on your situation. |
Assumptions this calculator makes
- The short-term loan is interest-only, with rehab funds drawn at purchase (real draws come later, so interest is slightly overstated).
- The refinance loan is the ARV × LTV you enter. A lower appraisal, a lender's seasoning rule or a DSCR or credit requirement can reduce it or delay it.
- Rental cash flow uses the same engine as the rental cash flow calculator: NOI less the new payment and the CapEx reserve.
- Equity is before selling costs and taxes. Figures are pre-tax and illustrative.
Terms: BRRRR, ARV, cash-out refinance, LTV, DSCR, hard money loan. Compare with BRRRR vs fix-and-flip.
Have a specific property in mind?
A Rental Property Analysis checks the rent, expenses and value assumptions behind a BRRRR plan for a real address - it does not replace an appraisal or a lender's decision.
See the Rental Property AnalysisBRRRR questions
What does BRRRR stand for?
Buy, rehab, rent, refinance, repeat. You buy a property that needs work, renovate it, rent it out, then refinance against the higher value to pull cash back out for the next deal.
Will I get all my money back in a BRRRR?
Only if the appraisal and the lender cooperate. The cash returned depends on the appraised value, the loan-to-value the lender allows and the refinance costs - none of which are known until the refinance happens.
What is a seasoning period?
Many lenders want you to have owned the property for a set time, often six to twelve months, before a cash-out refinance uses the new appraised value instead of what you paid. Ask lenders before you buy.
Why can BRRRR cash flow be negative?
Pulling out most of your cash means a larger loan and a larger payment. The rent has to cover that payment plus operating costs and reserves; the scenario table shows when it does not.
Educational Use Only: Reaixo provides estimates and scenario calculations for informational and educational purposes. Reaixo is not acting as a real-estate broker, appraiser, lender, financial advisor, tax advisor, accountant, or investment advisor. Rental income, vacancy, expenses, property values, financing terms and investment performance can vary materially. Calculator results are not an investment recommendation, appraisal, loan offer, or guarantee of future returns.
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