BRRRR calculator
BRRRR means buy, rehab, rent, refinance, repeat. You buy and fix a property, rent it, then refinance based on its new value to pull cash back out. Enter the deal to see how much cash stays in, the monthly cash flow after the new loan, and your cash-on-cash return.
Educational estimate based on the numbers you enter and common rules of thumb. Not a loan offer, rate quote, approval or financial advice. A licensed loan officer can run your real numbers.
How this calculator works
This calculator follows a buy, rehab, rent, refinance deal from start to finish. Your all-in cost is the purchase price, rehab cost and purchase closing costs. The refinance loan is the ARV times the refinance share you enter. Cash recovered at the refinance is that loan minus the refinance costs. Cash left in the deal is your all-in cost minus the cash recovered.
The new payment uses a 30-year fixed, fully amortizing loan at the refinance rate you enter. Enter the rate from your own quote; the field starts empty. Monthly cash flow is rent minus your monthly expenses minus that principal and interest payment. Cash-on-cash return is a year of cash flow divided by the cash left in the deal. If no cash is left in, the return shows as infinite.
Limits: the tool treats the purchase and rehab as paid in cash before the refinance. It does not add interest or points on short-term purchase or rehab financing, or holding costs while the work is done. The monthly expense figure must include taxes, insurance, repairs, management and vacancy, because nothing else is added. Rent and expenses are held flat.
When you refinance a rental, a lender orders an appraisal to confirm the value and sizes the loan from it. Many lenders require you to own the property for some time before they use the new value. Rental property loans, often called DSCR loans, can qualify the property on its rent. The lender compares the rent with the full monthly payment, including taxes, insurance and any HOA dues.
Related: DSCR rental calculator · DSCR ratio explained · DSCR loans for rental properties · Fix and flip analyzer
Common questions
What does cash left in the deal mean?
It is how much of your own money stays invested after the refinance pays off the purchase. Pulling most of it out lets you repeat the process, but it also means a bigger loan and a smaller monthly cash flow.
Can I refinance a rental right after rehab?
Some lenders require you to own the property for a period before they use the new value. Rental property (DSCR) loans may qualify the property on its rent. Ask a loan officer about seasoning rules.
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