BRRRR Calculator

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a strategy where you buy a distressed property below market value, renovate it, rent it out, refinance based on the new higher appraised value, and use the cash pulled out to repeat the process.

You buy a property that needs work (usually 20–30% below after-repair value), fund the renovation, get a tenant in place, then do a cash-out refinance based on the improved property value. If done right, you recover most or all of your initial cash.

A strong BRRRR deal means you recover 90–100%+ of your invested cash at refinance while the property still cash flows positively. The key metric is "cash left in deal" — ideally as close to $0 as possible.

ARV is what the property will be worth after renovations are complete. It's estimated by looking at comparable recently-sold properties in similar condition. The refinance loan amount is based on ARV.

Most conventional lenders offer 70–80% LTV on a cash-out refinance for investment properties. 75% is the most common. The higher the LTV, the more cash you recover.

Key risks include: underestimating rehab costs, overestimating ARV, extended vacancy during renovation, appraisal coming in below expectations, and interest rate changes. Always build a 10–20% contingency buffer into rehab budgets.