Real Estate

BRRRR Method Calculator (Buy, Rehab, Rent, Refinance, Repeat)

Analyze real estate deals using the BRRRR strategy: calculate cash-out refinance proceeds, capital left in the deal, and cash-on-cash ROI.

What this calculator does

The BRRRR Method Calculator (Buy, Rehab, Rent, Refinance, Repeat) estimates your result instantly from the values you enter, using standard real estate formulas. Analyze real estate deals using the BRRRR strategy: calculate cash-out refinance proceeds, capital left in the deal, and cash-on-cash ROI. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

About BRRRR Method Calculator (Buy, Rehab, Rent, Refinance, Repeat)

The BRRRR Method Calculator models the entire Buy, Rehab, Rent, Refinance, Repeat investment lifecycle, computing how much capital you can pull out tax-free via a cash-out refinance at 75-80% of the new appraised ARV.

Formula & Mathematical Calculation

Total Initial Capital Invested = Purchase Price + Rehab Costs + Purchase Closing Costs

New Refinance Loan (75% ARV) = New Appraised ARV × 0.75

Remaining Cash Left in Deal = Total Initial Capital - New Refinance Loan Proceeds

Calculation Example

Buy $120k + Rehab $35k = $155k Invested. New ARV = $220k. Refinance @ 75% ($165k Loan): Pulls out 100% of invested capital ($155k returned + $10k cash!) → Infinite Cash-on-Cash Return on rental cash flow!

Key Benefits

  • Models all 5 phases of the BRRRR real estate investment strategy
  • Calculates cash-out refinance equity extraction (75% to 80% ARV)
  • Identifies Perfect BRRRR deals where 100% of capital is recycled
  • Computes ongoing rental cash flow on the new refinanced mortgage
  • Empowers real estate investors to scale portfolios rapidly

How to Use this Calculator

  1. Enter Purchase & Rehab Costs
    Input initial acquisition price, closing costs, and renovation budget.
  2. Enter Appraised ARV & Refinance Terms
    Input new appraisal value, refinance LTV (e.g. 75%), and interest rate.
  3. Enter Projected Rental Income
    Input monthly rent to evaluate ongoing cash flow.
  4. Calculate BRRRR Returns
    Click Calculate to view capital recovered and cash-on-cash yield.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • BRRRR Method Calculator (Buy, Rehab, Rent, Refinance, Repeat) produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

A perfect BRRRR occurs when the new cash-out refinance loan covers 100% of your initial purchase, closing, and rehab costs, allowing you to own a cash-flowing rental property with zero of your own money left in the deal (infinite return).

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