What is the BRRRR method?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Investors buy a distressed property below market value, renovate it, rent it to a tenant, then do a cash-out refinance based on the new appraised value to recover their invested capital — then repeat the cycle with the recycled cash.

What is "money left in deal"?

Money left in deal is your total cash invested (purchase + closing costs + rehab) minus the cash-out refinance proceeds. Ideally this number is zero or negative, meaning the refinance returned all your capital. A positive number means some equity is locked in the property.

What LTV do lenders use for a BRRRR refinance?

Most conventional lenders allow 70–75% LTV on investment property cash-out refinances. Hard money lenders may go up to 80%, but at higher rates. 75% is a common planning assumption.

What counts as an operating expense?

Operating expenses include property taxes, landlord insurance, property management fees (typically 8–12% of rent), maintenance and repairs reserve (5–10% of rent), and a vacancy reserve (5–10% of rent). Do not include the mortgage payment — that is a financing cost calculated separately.

What is a good cash-on-cash return for a BRRRR rental?

Cash-on-cash return depends on the equity left in the deal. If you fully recycled your capital (money left in = $0), CoC is technically infinite. When some equity remains, most investors target 8–12% CoC as a baseline for a buy-and-hold rental.

Can I use this for multi-family or commercial?

Yes, the math applies to any rental property. Just enter the total purchase price, total rehab budget, combined monthly rent, and the refinance LTV your lender offers. The cash flow line would represent the whole property, not a per-unit figure.

BRRRR Calculator

Name: BRRRR Calculator
Availability: InStock
Author: Nham Vu

Enter your purchase price, rehab costs, ARV, rent, and refinance terms to see how much cash you pull out, how much equity stays in the deal, and your monthly cash flow.

BRRRR Deal Inputs

Buy

Purchase Price ($)

Purchase Closing Costs ($)

Rehab

Rehab / Renovation Costs ($)

Refinance

After-Repair Value / ARV ($)

Refinance LTV (%)

Interest Rate (% per year)

Loan Term (years)

Refinance Closing Costs ($)

Rent & Operating Expenses

Monthly Rent ($)

Monthly Operating Expenses ($) (taxes, insurance, mgmt, maintenance, vacancy)

Money Left in Deal

Enter values and click Calculate

Refinance Loan

Cash Out

Monthly Cash Flow

Cash-on-Cash Return

Deal Summary

Total Cash Invested --

Purchase Price --

Purchase Closing Costs --

Rehab Costs --

After-Repair Value (ARV) --

Refinance Loan (75% LTV) --

Refinance Closing Costs --

Monthly Mortgage Payment --

Monthly Gross Rent --

Monthly Operating Expenses --

Net Monthly Cash Flow --

Summary

Enter your purchase price, rehab costs, ARV, rent, and refinance terms to see how much cash you pull out, how much equity stays in the deal, and your monthly cash flow.

How it works

Enter the purchase price and any purchase closing costs.
Add your estimated rehab (renovation) costs.
Enter the after-repair value (ARV) — the appraised value after renovations.
Fill in the refinance terms: loan-to-value percentage, interest rate, and loan term.
Enter monthly rent and operating expenses (taxes, insurance, property management, maintenance, vacancy reserve).
The calculator shows the refinance loan amount, cash pulled out, money left in deal, monthly mortgage payment, net cash flow, and cash-on-cash return.

Use cases

Evaluate whether a BRRRR deal lets you recycle most or all of your capital.
Compare different ARV estimates to see how they affect the cash-out amount.
Model different loan-to-value ratios to find the most favorable refinance terms.
Stress-test a deal by raising vacancy or maintenance reserves.
Present a complete BRRRR deal analysis to a private lender or hard money lender.
Determine the maximum purchase price to achieve a full capital recycle.
Calculate minimum rent needed to produce positive monthly cash flow.
Plan repeat cycles — see how quickly you can redeploy capital into the next deal.

Frequently Asked Questions

Last updated: 2026-06-11 · Reviewed by Nham Vu