BRRRR Calculator
Quick answer
Post-refi cash left in ≈ all-in basis (purchase + rehab + carry + closing) minus refi proceeds at the as-stabilized LTV, after refi closing costs. If proceeds do not return most of your cash, you did not “pull out equity”—you built equity you cannot spend.
For a related estimate, see Cap Rate Calculator.
Explore further: Cash On Cash Return Calculator · Airbnb Calculator
Capital stack logic
All-in basis = acquisition + closing + rehab + holding costs. Refi proceeds ≈ min(LTV × appraised value, lender cap) − fees. Cash back ≈ proceeds − remaining bridge payoffs − refi closing. After refi, rental cash flow must clear life and DSCR must clear the lender—BRRRR is not done at the appraisal.
Explore further: Price Per Square Foot Calculator
BRRRR recycles capital: buy below market, force value with rehab, prove income with a lease, then refinance into long-term debt sized off a stabilized appraisal. It works when the exit loan is real—supportable ARV, known DSCR, and a rate/LTV you can actually get on investment property.
How to use this calculator
- Underwrite the exit loan first: If the refi LTV or rate you need does not exist in today’s market, the strategy is invalid—not “later when rates drop.”
- Stabilize rent before the appraiser: A signed lease at market beats a pro forma; STR needs history, not a spreadsheet.
- Carry is real money: Bridge interest, insurance, utilities, and taxes during rehab and lease-up belong in the stack—skip them and you overstate recycle.
Common mistake: ARV as fantasy
The refi is scored on the appraiser’s supportable value, not your contractor’s mood board. If your model needs ARV at the top of the range, you are underwriting luck.
Real-world examples
- Case study: $172k + $48k rehab, $285k ARV, 72% LTV: All-in ~$220k before bridge interest. Refi proceeds ~$205k (72% of $285k, net of fees sketch)—roughly breakeven on cash if bridge was paid from proceeds. ARV $265k instead → proceeds ~$191k—cash trapped unless you bring equity or negotiate price before you buy.
- Rate +75 bps on exit: Same loan amount, higher P&I—post-refi rental cash flow must still beat your hurdle. Cheap bridge that expires into an expensive permanent loan is how “infinite return” becomes “infinite headache.”
What to decide
If you cannot refi at terms that leave positive cash flow and acceptable DSCR, the deal is a flip or a hold—not a recycle. Line up refinance costs and a second appraisal narrative before you rely on pulled cash for the next acquisition.
FAQ
What makes a BRRRR “work”?
Enough spread between all-in basis (buy + rehab + carry) and post-repair value that refi proceeds return most of your cash while rent covers the new debt.
What if the appraisal comes in low?
Your cash stays trapped—model sensitivity to ARV and LTV before you buy, not after the appraiser leaves.
Are refi terms the same as purchase loans?
Rates, fees, and LTV caps on investment refis differ from owner-occupant products—underwrite the exit loan, not today’s purchase quote alone.
Is BRRRR passive?
The rehab and tenant phase rarely is—budget time and carrying costs like an operator, not a spectator.