🔁 BRRRR Calculator

Model the Buy, Rehab, Rent, Refinance, Repeat strategy: see your refinance loan, cash recovered, cash left in the deal, and resulting cash-on-cash return.

Purchase Price ($)

Rehab Cost ($)

Other Purchase / Closing Costs ($)

After-Repair Value — ARV ($)

Refinance LTV (%)

Refinance Interest Rate (%)

Refinance Term (Years)

Monthly Rent ($)

Monthly Operating Expenses ($)

Cash-on-Cash Return

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Refinance Loan Amount — Cash Recovered at Refinance — Cash Left in Deal — New Monthly Mortgage Payment — Monthly Cash Flow —

BRRRR Step-by-Step Summary

Step	Amount

Cash-on-Cash Return Calculator Mortgage Calculator Amortization Schedule

GUIDE

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What Is the BRRRR Strategy?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a real estate investing strategy where you purchase a distressed property (often in cash or with a hard-money loan), renovate it to increase its value, rent it to a tenant, then refinance with a conventional loan based on the new, higher after-repair value (ARV). If the refinance loan is large enough, you can recover most or all of your original cash investment, freeing that capital to repeat the process on another property.

How the Numbers Flow Through a BRRRR Deal

This calculator assumes an all-cash purchase and rehab, so your total cash invested is the purchase price plus rehab cost plus other closing costs. Once the property is renovated and rented, you refinance based on the ARV at your lender's loan-to-value (LTV) ratio — commonly 70-75% for investment properties. The refinance loan amount becomes your cash-out, and subtracting it from your total cash invested tells you how much of your own capital, if any, remains tied up in the deal.

Understanding the Infinite Return Scenario

When your refinance loan amount equals or exceeds your total cash invested, your cash-on-cash return becomes mathematically infinite — you have recovered 100% (or more) of your own money while still owning a cash-flowing rental property. For example, investing $165,000 (purchase + rehab + costs) in a property that appraises for $220,000 ARV, with a 75% LTV refinance loan of $165,000, leaves $0 of your own cash in the deal: any positive monthly cash flow thereafter represents an infinite return on your remaining invested capital.

When Cash Stays in the Deal

Not every BRRRR deal fully returns your capital. If the ARV comes in lower than projected, if the lender's LTV is more conservative, or if renovation costs run over budget, your refinance loan may cover only part of your total cash invested. In that case, this calculator computes a standard (finite) cash-on-cash return using the remaining cash left in the deal as the denominator, the same way a traditional buy-and-hold rental would be evaluated.

Risks and Assumptions Behind the BRRRR Model

The BRRRR strategy depends heavily on accurate ARV estimates, disciplined rehab budgeting, and a "seasoning period" most lenders require (often 6-12 months of ownership) before allowing a cash-out refinance at the new appraised value. Interest rate changes between purchase and refinance can also affect your new mortgage payment and monthly cash flow. Because this strategy relies on appraisal and lending decisions outside your control, conservative ARV and rehab-cost assumptions are safer than optimistic ones.

Calculating the New Mortgage Payment After Refinance

Once you know your refinance loan amount, this calculator computes the new monthly principal-and-interest payment using the standard amortization formula: M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments over your loan term. That payment is then subtracted from rent and operating expenses to determine your ongoing monthly cash flow — the metric that ultimately drives your cash-on-cash return.

BRRRR vs. Traditional Buy-and-Hold

A traditional rental purchase typically ties up your down payment for the life of the loan, whereas a successful BRRRR deal returns most of that capital within a year, letting you redeploy it into the next property. This makes portfolio scaling faster, but it also concentrates more risk into the renovation and appraisal steps. If you're evaluating a simpler buy-and-hold purchase instead, our cash-on-cash return calculator and mortgage calculator cover that scenario directly.

Frequently asked questions

What does an "infinite" cash-on-cash return actually mean?

It means you recovered all (or more than all) of the cash you originally invested through the refinance, while still owning a cash-flowing property. Since your remaining cash investment is zero (or negative, meaning you pulled out surplus cash), any positive cash flow divided by that near-zero base produces a mathematically infinite percentage return — this calculator displays this explicitly rather than showing a dividing-by-zero error.

What if I pull out more cash than I originally invested?

This is possible if the refinance loan exceeds your total cash invested. In that case you have a surplus cash-out (extra cash in your pocket) plus a cash-flowing rental with none of your own capital in it — also treated as an infinite return since your invested capital base is zero or negative.

What LTV can I expect on a BRRRR refinance?

Most conventional investment-property cash-out refinances allow 70-75% LTV based on the appraised after-repair value, though this varies by lender, loan type, and your credit profile. Some lenders also require a seasoning period of 6-12 months of ownership before allowing a cash-out refinance at the new value.

Does this calculator include the rehab timeline or holding costs during renovation?

No. This tool models the steady-state numbers after refinance and rent-up. It does not separately account for holding costs (utilities, insurance, loan interest if financed) during the rehab period before the property is rented — factor those into your rehab budget separately.

What if the appraisal comes in below my ARV estimate?

A lower appraisal reduces your refinance loan amount, which means less cash recovered and more of your own capital left in the deal. Re-run this calculator with a more conservative ARV to stress-test your numbers before committing to a purchase.

Is this calculator financial or investment advice?

No. This tool provides estimates for educational purposes only and is not financial or real estate investment advice. Actual refinance terms, appraisals, and cash flow depend on market conditions and lender decisions. Consult a qualified real estate or financial professional before investing.