BRRRR Calculator
Model a buy, rehab, rent, refinance, repeat deal. See how much cash the refinance returns, how much stays in the property, and the cash flow and return after the new loan.
BRRRR Calculator
Model a buy, rehab, rent, refinance, repeat deal. See how much cash the refinance returns, how much stays in the property, and the cash flow and return after the new loan.
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Book a DemoEstimates only. The model treats purchase and rehab as paid in cash, so put any short-term loan interest and fees in closing and holding costs. Appraisals, LTV limits and seasoning rules vary by lender. This is not financial advice.
How the BRRRR Method Works
BRRRR stands for buy, rehab, rent, refinance, repeat. An investor buys a property below market value, renovates it, rents it out, then refinances based on the new, higher value. The refinance returns some or all of the cash, which goes into the next deal.
The number that decides a BRRRR deal is cash left in the deal: total cash invested minus net cash back at refinance. The lower it is, the faster the same money can be used again.
Worked Example
An investor pays $142,000, spends $40,000 on rehab and $12,000 on closing and holding costs, for $194,000 invested. The property appraises at $260,000. A 75% loan is $195,000, and after $5,000 in refinance costs $190,000 comes back.
That recovers 98% of the cash and leaves $4,000 in the deal, with $65,000 in equity. At 7.25% over 30 years the payment is $1,330. With $2,400 rent and $700 in expenses, cash flow is $370 a month, a cash-on-cash return of 110.9%.
The Limits Lenders Set
The refinance is capped by loan-to-value. Fannie Mae's eligibility matrix dated December 10, 2025 lists a 75% maximum for a cash-out refinance on a 1-unit investment property and 70% on 2 to 4 units. DSCR lenders set their own limits.
Lenders also apply seasoning rules, which set how long you must own the property before a cash-out refinance can use the new appraised value. Ask about seasoning before you buy, because it decides how long your cash is tied up.
The 70% Rule
A common screen is to pay no more than 70% of after repair value minus rehab costs. It leaves room for closing costs, holding costs and a 75% refinance. The calculator shows that maximum next to your purchase price.
Related Calculators
- After Repair Value (ARV) Calculator: Estimate the value the refinance will be based on.
- Rental Property Refinance Calculator: Model the refinance step in more detail.
- DSCR Loan Calculator: Check the rent against a DSCR lender's minimum.
- Cash on Cash Return Calculator: Compare the return with other deals.
Frequently Asked Questions
What does BRRRR stand for?
Buy, rehab, rent, refinance, repeat. It is a way to build a rental portfolio by recovering most of the cash from each property through a refinance and using it for the next purchase.
How much cash should a BRRRR deal return?
The goal is to recover as much of the invested cash as possible. Recovering all of it requires an all-in cost at or below the refinance loan minus refinance costs, which at 75% LTV means roughly 70% to 73% of after repair value.
What is the 70% rule in BRRRR?
A screening rule: pay no more than 70% of the after repair value minus rehab costs. On a $260,000 after repair value with $40,000 of rehab, that is $142,000.
How long do I have to wait to refinance a BRRRR property?
It depends on the lender's seasoning rule, which sets how long you must own the property before a cash-out refinance can use the new appraised value. Confirm it with the lender before you buy.
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