Analyze a buy, rehab, rent, refinance, repeat deal. Enter the purchase, rehab and financing, the after-repair value and refinance terms, and the rent and expenses to see how much cash you get back at the refinance, how much stays in the deal, the monthly cash flow and your cash-on-cash return.
Last updated:
Buy & rehab
$
$
$
months
$/ mo
Taxes, insurance and utilities before it is rented.
How you buy
%
%
%
Interest-only during the rehab.
%
Refinance
$
%
%
$
Rent
$/ mo
% of rent
% of rent
% of rent
$/ yr
$/ yr
$/ mo
Enter your values to see the result.
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How to use the BRRRR Calculator
Enter the purchase price, closing costs, rehab budget and how many months the rehab and lease-up take.
Choose all cash or a hard money loan and enter its terms.
Enter the ARV and refinance terms: loan-to-value, rate, term and closing costs.
Add the rent and operating expenses after the property is rented.
Press Calculate BRRRR to see cash left in the deal, cash flow and cash-on-cash return.
Cash back at refinance = refinance loan − payoff of the first loan − refinance closing costs
Cash left in the deal = cash invested − cash back
Cash flow = rent − vacancy − management − repairs/capex − taxes − insurance − other − new mortgage payment
Cash-on-cash return = yearly cash flow ÷ cash left in the deal
Example with the default numbers: a $120,000 purchase with $40,000 of rehab, financed by a hard money loan for 90% of the price and all of the rehab at 11% interest and 2 points, held 5 months, costs about $175,240 all in, of which about $27,240 is your own cash. Refinancing at 75% of a $210,000 ARV gives a $157,500 loan; after paying off the $148,000 loan and $4,500 of closing costs you get $5,000 back, leaving about $22,240 in the deal. Rent of $1,950, minus 23% for vacancy, management and repairs, $300 of taxes and insurance and the new $1,074 mortgage, leaves about $127 a month, a cash-on-cash return of about 6.9%.
Cash you can pull out at different LTVs
ARV
70% LTV loan
75% LTV loan
80% LTV loan
$150,000
$105,000
$112,500
$120,000
$200,000
$140,000
$150,000
$160,000
$250,000
$175,000
$187,500
$200,000
$300,000
$210,000
$225,000
$240,000
$400,000
$280,000
$300,000
$320,000
To get all of your cash back, the all-in cost plus refinance costs must be at or below the refinance loan amount.
Tips
Get a realistic ARV from recent renovated comparable sales, not list prices.
Ask your refinance lender about seasoning rules and DSCR requirements before you buy.
Buy, Rehab, Rent, Refinance, Repeat. You buy a property below its potential value, renovate it, rent it out, then refinance based on the higher after-repair value to pull out most or all of the cash you invested, and use that cash for the next property.
How do you calculate cash left in a BRRRR deal?
Cash left in the deal = total cash invested − cash returned at refinance. Cash invested is the all-in cost (price, closing costs, rehab, holding costs, loan interest and points) minus any purchase or rehab loan. Cash returned is the new loan (ARV × LTV) minus the payoff of the original loan and the refinance closing costs.
What LTV do lenders allow on a BRRRR refinance?
Cash-out refinances on investment properties are commonly limited to about 70% to 75% of the appraised value, sometimes 80% for DSCR or portfolio lenders. Many lenders also require a seasoning period, often 6 to 12 months of ownership, before they will use the new appraised value instead of your purchase cost.
What is a good cash-on-cash return for BRRRR?
Many investors look for 8% to 12% or more on the cash left in the deal. If the refinance returns all of your cash and the property still cash flows, the cash-on-cash return is effectively infinite, which is the ideal BRRRR outcome.
What is the 75% rule for BRRRR?
A common guideline is to keep the all-in cost (purchase plus rehab plus costs) at or below 75% of the ARV, so a 75% LTV refinance can return nearly all your cash. Compare the all-in cost shown in the steps with ARV × your lender's LTV.
What can go wrong with a BRRRR deal?
The appraisal can come in below your ARV, the rehab can run over budget or time, interest rates can rise before you refinance, and rent may be lower than expected. Run the numbers with a lower ARV and higher rehab cost to see how much margin you have.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.