Free tool — BRRRR calculator

BRRRR calculator.
Buy → rehab → refinance → repeat.

Model the full deal cycle. All-in cost, ARV, refinance proceeds, cash recovered, equity captured, and post-refi DSCR — the numbers that decide whether the cycle repeats.

How to use this calculator

Your deal.
In nine numbers.

Enter purchase price, rehab budget, closing costs, and holding costs to build the all-in number, then add ARV, refinance LTV, and the refinance rate to model the cash-out. Monthly rent and operating expenses drive the cash flow and the post-refi DSCR at the bottom. Every field recalculates instantly, so you can move one input and watch the cash left in the deal move with it. New to the strategy? Read the BRRRR beginner's guide first, then come back and run your own numbers.

acquisition

purchase price ($)

rehab cost ($)

closing costs ($)

holding costs ($)

ARV & refinance

ARV ($)

refinance LTV (%)

refinance rate (%)

rental income

monthly rent ($)

monthly expenses ($)

all-in cost

$115,000

purchase + rehab + closing + holding

refinance proceeds

$120,000

75% of ARV

cash left in deal

full capital recovered

equity captured

$45,000

28.1% of ARV

monthly cash flow

$161

after mortgage payment

cash-on-cash

∞

infinite — the refinance returned every dollar in

DSCR

1.13

marginal

BRRRR · 101

The math.
The margin.

The BRRRR method lives or dies on one number — how much of your own cash is still sitting in the property after the refinance clears.

The formula.

All-in cost = purchase + rehab + closing + holding. Refinance proceeds = ARV × refinance LTV. Cash left in the deal is the difference between the two — the capital you cannot recycle into the next property.

all-inpurchase + rehab + costs

proceedsARV × LTV

target$0 left in

The thresholds.

Most lenders cash out at 70–80% of ARV after a seasoning period of around six months, though that varies by lender. Recover everything and the return is effectively infinite; leave half your capital behind and the cycle stalls.

nothing left ininfinite return

under 25% leftstrong cycle

25–50% leftslow cycle

over 50% leftcapital stuck

Where deals break.

Two inputs sink most BRRRRs: an ARV set by hope instead of comps, and a rehab budget with no contingency. The appraisal comes in low, the refinance shrinks, and your cash stays trapped. See how a cash-out refinance on a rental is actually underwritten before you count on the proceeds.

appraisal riskARV vs. comps

budget riskrehab overrun

lender floorDSCR ≥ 1.20

How BRRRR works

Five letters.
One cycle.

Every cycle either recovers your capital or it doesn't. The math is unforgiving, and a single optimistic ARV can strand your money for years — see what a failed BRRRR looks like before you buy.

1step

Buy.

Distressed property below market. Auctions, pre-foreclosures, off-market.

2step

Rehab.

Renovate to force ARV. Kitchens, baths, curb appeal — budget conservatively.

3step

Rent.

Place a quality tenant. DSCR floor of 1.20+ keeps the refi possible.

4step

Refinance.

Cash-out at roughly 70–80% of ARV after seasoning — often about six months, varies by lender.

5step

Repeat.

Use refi proceeds to fund the next deal. Compound the cycle.

FAQ

Before you buy.

The questions investors ask before they commit capital to a rehab.

— The formula —

How do you calculate a BRRRR deal?

Add purchase price, rehab, closing costs, and holding costs to get your all-in number. Multiply ARV by the refinance LTV your lender offers — commonly 70 to 75% — to get the cash-out proceeds. All-in minus proceeds is the cash left in the deal, and that number decides how fast you can buy the next one.

— Good deal? —

What is a good BRRRR deal?

One where the refinance returns most or all of your capital. All-in at or below 75% of ARV usually gets you close, and pulling everything back out makes the return effectively infinite because no cash stays in the property. It still has to cash flow after the new, larger loan payment.

— What counts —

What costs belong in the all-in number?

Purchase price, the full rehab budget, closing costs on the purchase, and holding costs while you renovate — loan interest, taxes, insurance, and utilities. Refinance closing costs belong there too unless you roll them into the new loan. Under-counting any of them turns a paper win into a real loss.

— Biggest mistake —

What is the most common BRRRR mistake?

Overestimating ARV. Investors price the finished house off the best sale on the street, the appraiser uses the median, and the refinance comes back smaller than planned. Pull real comps, carry a rehab contingency of roughly 10 to 15%, and confirm the rent still covers the new payment at a DSCR of 1.20 or better.

Live · all 50 states

Find BRRRR deals
nationwide.

Verleon AI scores every property for BRRRR potential — equity margin, rehab estimate, comps and ARV, post-rehab DSCR — across our entire database.

Start searching →Read the full guide