BRRRR Strategy Calculator
Buy, Rehab, Rent, Refinance, Repeat. Model your deal to see how much capital you can recycle after refinancing, your monthly cash flow, and cash-on-cash return.
How to Analyze a BRRRR Deal in 4 Steps
No spreadsheet needed. Enter your deal numbers phase by phase and instantly see whether your deal recycles capital efficiently, generates positive cash flow, and meets a professional return threshold.
Enter Your Buy & Rehab Costs
Input the purchase price, total rehab budget, and closing or carrying costs — hard money interest, inspections, and any holding costs during the renovation period. These three numbers make up your total capital deployed and are the baseline the refinance phase is measured against. Use your actual contract numbers, not estimates, for the most accurate result.
Set Your After Repair Value & Refinance Terms
Enter the ARV — the appraised value after renovations are complete. This is the number that unlocks capital recycling. Then set the maximum LTV your lender will allow (typically 75%), your refinance interest rate, and loan term. The calculator shows exactly how much of your invested capital the new loan returns to you — and how much remains in the deal.
Enter Monthly Rent & Operating Expenses
Input the monthly rent you expect from the property once stabilized, and your total monthly operating expenses — property tax, insurance, maintenance, vacancy reserve, and management fees if applicable. The calculator computes your new mortgage payment from the refinanced loan and deducts it alongside your operating expenses to show true net cash flow.
Read the Verdict & Download Your Report
The results panel shows cash left in deal, monthly and annual cash flow, cash-on-cash return, an automated deal verdict, proportion bars, and two charts — capital recycling bars and a monthly income donut. A green hero box confirms a Perfect BRRRR. Download the branded PDF report to share with your lender, hard money partner, or investors before closing.
Everything the Calculator Shows You
Most BRRRR calculators only show whether you pulled your money out. This one models the complete deal — from capital recycling efficiency to monthly cash flow and professional return metrics — the same way experienced investors evaluate deals before committing capital.
Cash Left in Deal & Capital Recycled
The hero metric: exactly how much of your original capital remains in the property after the cash-out refinance. A green hero card and “Perfect BRRRR” label appear when this number reaches zero, confirming you have fully recovered your investment while retaining the asset. Also shows how much capital the refinance returned toward your next deal.
Monthly & Annual Cash Flow
Net cash flow after the refinanced mortgage P&I, operating expenses, and all other monthly costs are deducted from gross rent. Displayed in green when positive, red when negative. Annual cash flow is also shown — both figures update live as you adjust any input. These are the returns you will actually deposit into your account each month and year.
Cash-on-Cash Return
Annual net cash flow divided by cash left in deal — the standard return metric for rental properties. Colour-coded green above 8%, orange for 4–8%, and red below 4%. Displays “∞ Infinite” when cash left in deal reaches zero, which is mathematically correct but should still be reviewed in absolute dollar terms before drawing conclusions.
Automated Deal Verdict
A colour-coded verdict banner summarises the deal quality in plain language: Perfect BRRRR, Strong Deal (>12% CoC), Solid Deal (6–12%), Caution (<6% CoC), or Negative Cash Flow. The verdict weighs both capital recycling efficiency and ongoing cash flow simultaneously — so you cannot accidentally celebrate a zero-equity deal that loses money every month.
Equity Created & Refinance Summary Cards
Three summary cards show ARV, LTV used, and equity retained after the refinance. A second row of three cards shows monthly cash flow, annual cash flow, and cash-on-cash return. These six cards give you the complete picture of both the refinance outcome and the ongoing rental economics in a single scannable layout — the same format used in professional deal memos.
Proportion Bars, Charts & PDF Report
Proportion bars show mortgage P&I, operating expenses, and net cash flow as a share of gross rent — revealing at a glance how your rental income is allocated. Two charts visualise capital recycling (bar) and monthly income allocation (donut). The downloadable PDF contains the full deal analysis formatted for sharing with lenders, hard money partners, or co-investors.
The Numbers Behind Successful BRRRR Deals
Three Investors Who Need This Calculator
Whether you’re evaluating your first value-add rental or managing a growing portfolio of recycled-capital assets, the same core math applies — and it needs to be right before you close.
You’ve found a distressed property and you’re trying to work out if the ARV is high enough to pull most of your money back after the refinance — and whether the rent will still cover the new mortgage. You’ve heard about the 70% rule but want to see the actual numbers for your specific deal before committing.
- Use conservative ARV estimates — base it on comparable sales, not your renovation wishlist
- Include hard money interest and holding costs in your closing costs input; they are part of your total capital deployed
- Run the calc at 70% LTV as well as 75% to see how lender variation affects your cash left in deal
- If cash flow is negative after the refi, check whether your operating expenses are realistic or your rent projection is too optimistic
You’ve done two or three BRRRR deals and you’re focused on velocity — how quickly can you redeploy capital into the next property. You use this calculator to quickly screen incoming deals: does the ARV support a full capital pull at 75% LTV, and does the post-refi cash flow meet your minimum 8% CoC threshold?
- Screen deals in under two minutes by testing ARV sensitivity — enter ARV at 90%, 100%, and 110% of your estimate to see the capital recycling range
- Model your realistic rehab cost including a 10–15% contingency — rehab overruns are the most common reason BRRRR deals miss their capital recovery target
- Track cash left in deal across your portfolio; the aggregate tells you how much additional capital you can access through future refinances
- Download a PDF for each deal and build a deal comparison folder before presenting to your lender for the refinance
You’re presenting this deal to a hard money lender, private partner, or conventional bank for the refinance. You need a clean, professional summary of the deal economics — total capital in, ARV, new loan amount, cash flow, and return metrics — formatted for a presentation or email attachment. The calculator’s PDF report delivers exactly that in 60 seconds.
- Enter the lender’s stated maximum LTV to model exactly what the refinance will return — confirm this in writing before relying on it
- Use the operating expenses field to reflect a property management fee even if you self-manage now; lenders underwrite the deal assuming professional management
- The PDF report shows total capital deployed, new loan, cash left in deal, and cash flow — the four numbers any lender will verify first
- Run a stress-test scenario at 10% lower ARV and present both cases; demonstrating conservative underwriting builds lender confidence
7 Things Every BRRRR Investor Should Know Before Closing
The BRRRR strategy is powerful — but the math has to work in the right sequence. These tips will help you enter your numbers correctly, interpret the results honestly, and avoid the mistakes that leave investors with capital stuck in a deal.
The 70% Rule Is a Screening Tool, Not a Guarantee of Capital Recovery
The 70% rule says your maximum purchase price should be 70% of ARV minus rehab costs. At a 75% LTV refinance, this leaves a buffer for closing costs and contingency overruns. But if your closing costs are high or your rehab comes in over budget, you can follow the 70% rule and still have capital left in the deal. Run this calculator with your actual numbers — the 70% rule is a quick filter, not a substitute for deal modeling.
ARV Is an Appraisal, Not a Guess — Get Comps First
After Repair Value is only as accurate as the comparable sales supporting it. Pull at least three comps within a half-mile radius, similar square footage, and similar bedroom count — all sold within the past 90 days if possible. An optimistic ARV that doesn’t survive the bank’s appraisal is the single most common reason BRRRR deals fail to pull out capital as planned. Build in a 5–10% haircut on your ARV estimate when modeling and keep it as your base case.
Hard Money Interest Is a Closing Cost — Include It in Your Total Capital Deployed
Many investors forget that hard money interest payments during the rehab period are part of their total capital deployed, not a separate line item. If you borrow $150,000 at 12% for 6 months while rehabbing, your carrying cost alone is $9,000. Add that to your rehab budget and purchase price when calculating total invested capital. Ignoring carrying costs understates your investment and overstates your capital recycling efficiency.
The Refinanced Mortgage Will Be Higher Than Your Original Loan — Plan for It
A common BRRRR mistake: investors model cash flow based on the original acquisition loan, then are surprised when the refinanced loan at 75% of a higher ARV creates a substantially larger payment. At 7% on a 30-year term, every $50,000 of loan adds roughly $333/month in P&I. If your ARV is $260,000 and your refi loan is $195,000, your monthly P&I is approximately $1,297. Make sure your rent covers that before celebrating a “zero money in the deal” outcome.
Use the 50% Rule to Stress-Test Your Operating Expense Estimate
The 50% rule is a rough heuristic: on average, operating expenses (excluding the mortgage) consume about 50% of gross rent over time. If your gross rent is $2,200/month, budget $1,100 for taxes, insurance, maintenance, vacancy, and reserves. Many first-time investors enter $200–$300 in operating expenses, generating a falsely attractive cash flow figure. Use this calculator’s operating expense field honestly — and then verify your result against the 50% rule as a sanity check.
A Perfect BRRRR with Negative Cash Flow Is Not a Good Deal
The calculator intentionally flags this scenario with a separate caution verdict. Pulling all your capital out of a deal sounds ideal, but if the refinanced mortgage creates a payment the rental income can’t service, you’ve created an obligation — not an asset. Negative monthly cash flow means you’re feeding the property every month out of your other income. Unless you have a clear plan to increase rent or reduce expenses, a negative-cash-flow BRRRR defeats the purpose of the strategy.
Download the PDF and Get Lender Feedback Before You Buy, Not After
The biggest leverage point in a BRRRR deal is confirming the refinance terms before you purchase — not after rehab is complete. Use the calculator’s PDF report to have a preliminary refinance conversation with your lender while the property is still under contract. Ask: “At this ARV and LTV, would you refinance this deal?” Getting lender feedback on the exit strategy upfront prevents the most costly BRRRR mistake: completing a rehab and discovering the refinance doesn’t return what you expected.
BRRRR Calculator — Frequently Asked Questions
New to the BRRRR strategy, or want to make sure you’re entering your numbers correctly? These answers cover everything from how the phases connect to how to handle hard money costs and negative cash flow scenarios.
For informational purposes only. All calculations provided by this tool are for educational and estimation purposes only and do not constitute financial, legal, or investment advice. BRRRR analysis results are projections based on user-supplied inputs and assume the entered ARV is achievable, operating expenses are accurate, and the refinance terms entered are available from a lender. Actual investment outcomes will differ based on appraisal results, lender qualification requirements, market rent conditions, vacancy rates, unexpected capital expenditures, and financing availability. The “Perfect BRRRR” and deal verdict labels are analytical outputs only — they do not represent a recommendation to purchase any specific property. Always consult a licensed real estate professional, mortgage lender, and financial advisor before making any investment decision. HomeExpertly is not a lender, broker, or registered investment advisor.