BRRRR Calculator

Buy, rehab, rent, refinance, repeat. See how much of your cash the refinance pulls back out, how much stays in the deal, and whether the property still cash-flows at the new mortgage.

Your numbers

$

What you paid for the property.

$

All work and materials to get it rent-ready, plus a contingency.

$

Legal, lender and survey fees, purchase taxes, and costs while the work is done.

The refinance

$

What the property should be worth once the renovation is finished.

$

Principal and interest on the refinanced loan.

$

Rent you actually expect to collect. Lower it if you expect empty months.

$

Management, insurance, property tax, service charges and a maintenance allowance.

Cash left in the deal

$26,000

of the $221,000 you invested stays in the property after refinancing

The maths

Total cash invested$221,000
New loan (75% of ARV)$195,000
Cash recovered by refinance$195,000
Cash left in the deal$26,000
Equity after refinance$65,000
Monthly cash flow$200
Cash on cash on money left in9.23%

Bar is full when the refinance returns all of your cash

What this means

  • $26,000 stays in the deal

    The refinance returns $195,000 of the $221,000 you invested. The rest stays tied up in the property.

  • Equity created by the renovation

    After the new loan, the property holds about $65,000 of equity on paper — value minus debt, before any selling costs.

  • Cash flow after refinancing

    The refinanced property leaves about $200 a month, or $2,400 a year.

  • Return on the cash left in

    The $2,400 of annual cash flow on $26,000 still invested works out to a 9.23% cash on cash return.

Track the deal after the refinance

Save this property and Propertira follows the real rent, costs and cash flow month by month, so the BRRRR numbers stop being a projection.

Track This Property

No card needed. Your calculator numbers carry over to your first property.

Propertira provides estimates based on the information you enter. Results are for informational purposes only and are not financial, tax, legal or investment advice.

How the BRRRR method works

BRRRR — buy, rehab, rent, refinance, repeat — is a way to build a rental portfolio without leaving your savings trapped in each property. You buy below the property's potential value, renovate to create that value, put a tenant in, then refinance at the new higher valuation. If the numbers work, the new loan repays most or all of the cash you put in, and you use it again on the next property.

A worked example: you buy for 180,000, spend 35,000 on the renovation and 6,000 on fees, so 221,000 of cash is in the deal. The finished property values at 260,000 and the lender refinances at 75% — a new loan of 195,000. That returns 195,000 of your cash, leaving 26,000 in the deal, while the property holds about 65,000 of equity.

The refinance decides everything

The whole strategy hinges on two numbers you do not fully control: the after-repair value and the lender's loan-to-value limit. A valuation 10% lower than expected, or a lender cap of 70% instead of 75%, can leave tens of thousands more of your cash in the deal. Run the calculator with a conservative after-repair value before you commit, and check the property still clears its costs with the break-even rent calculator.

Cash flow still matters after refinancing

Recovering your cash is only half the test. The refinanced mortgage is larger than the original purchase loan, so the monthly payment rises — and the rent has to cover it. Size the monthly position with the rental cash flow calculator and judge the return on whatever cash remains with the cash on cash return calculator.

Where BRRRR deals go wrong

The common failures are renovation costs overrunning, the after-repair value coming in low, and the rent not covering the new payment. Each one leaves more cash trapped or turns the property into a monthly cost. A margin of safety on all three — budget, valuation and rent — matters more than an optimistic headline return.

What this calculator does not do

It does not model bridging or purchase-loan interest during the renovation, lender fees on the refinance, taxes, or future price and rent changes. It turns the figures you enter into a single snapshot of cash in, cash out and monthly cash flow so you can compare deals on the same basis.

Good to know

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