BRRRR deal analyzer

Inputs

Purchase price	$95,000
Rehab budget	$35,000
Monthly rent (after rehab)	$1,700
Monthly opex (tax/ins/maint/mgmt)	$600
After Repair Value (ARV)	$175,000
Refinance LTV %	75%
New loan rate %	7.5%
Loan amortization (years)	30
Closing costs total	$8,000

Supporting metrics

Monthly cash flow	$182
Cash-on-cash return	32.4%
New loan amount	$131,250

About this calculator

BRRRR — the math that decides whether you can repeat

The whole point of BRRRR is to recycle your capital. If you can't pull most of your money out at the refinance step, the strategy degrades into "buy-and-hold-with-extra-steps." This calculator surfaces the cash-left-in number that determines whether you can BRRRR again.

The five steps

Buy below market (off-market, distressed, foreclosure)
Rehab to bring to market condition (or above)
Rent to stabilize at market rent
Refinance at 70-75% of After Repair Value (ARV)
Repeat with the cash you pulled out

The two failure modes

ARV came in low — your appraisal at refinance is below your projection, leaving you with cash trapped in the deal.
Rates moved — DSCR rates rose mid-rehab and the refi cash-flow doesn't pencil. You may be forced to hold conventional financing or wait.

The decision rule

Cash left in ≤ 25% of total in: great BRRRR — recycle 75%+ of capital
Cash left in 25-50%: OK — half-BRRRR, slower compound
Cash left in > 50%: failed BRRRR, treat as long-term hold

FAQ

What ARV should I use?

Three confirmed comps within 0.25 miles, sold in last 90 days, similar bed/bath/sqft, in similar condition to your post-rehab plan. Get at least one BPO (broker price opinion, $50-150) before closing on the rehab. ARV inflation is the #1 BRRRR failure mode.

What's a DSCR loan?

Debt Service Coverage Ratio — investor loan underwritten by the property's rental income, not your W-2. Typical terms: 75-80% LTV, 7-9% rate (2024), 30-yr fixed, 1-year prepayment penalty. Best for self-employed or investor-portfolio borrowers without W-2.

How long until I can refi?

Most lenders require 6-12 month seasoning (proof you've owned + rehabbed) before the cash-out refi. Some delayed-financing exemptions allow refi at purchase price within 6 months but restrict your cash-out. Plan for 9 months from purchase to refi closing in your cash-flow model.