Free BRRRR Calculator for Cash Flow and Investment Analytics
How To Calculate BRRRR
Step 1: Enter Property Purchase Details
Input the purchase price, closing costs, and estimated rehab budget.
If using financing, include loan terms (interest rate, down payment, etc.).
Step 2: Estimate Rental Income & Expenses
Enter monthly rent based on local comps.
Add operating expenses (property taxes, insurance, maintenance, vacancy, etc.).
Step 3: Set Refinance Assumptions
Input the after-repair value (ARV) based on appraisals or comps.
Adjust the refinance loan terms (LTV %, interest rate, fees).
Step 4: Review Your BRRRR Analysis
The calculator will show:
Total cash invested
Cash flow after refinancing
Cash-on-cash return (CoC)
Loan recapture amount
📌 Pro Tip: Aim for a refinance that recovers 70–80% of your total investment to recycle capital efficiently.
BRRRR STRATEGY FAQ's
What is the BRRRR Strategy?
The BRRRR Strategy stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a real estate investment approach where an investor purchases a distressed property, renovates it, rents it out, refinances to pull out most (or all) of their initial capital, and then repeats the process to scale their portfolio.
How Does the Refinance Step Work in BRRRR?
After rehabbing and renting the property, the investor gets an appraisal to determine the new (higher) value. They then refinance with a bank or lender, ideally pulling out enough cash to cover (or exceed) their initial purchase and renovation costs, allowing them to reinvest with minimal personal capital tied up.
What Types of Properties Work Best for BRRRR?
The best properties for BRRRR are usually distressed homes, foreclosures, or undervalued properties that need renovations but are in decent neighborhoods with strong rental demand. Single-family homes and small multifamily properties (2-4 units) are common choices.
What Are the Biggest Risks of the BRRRR Strategy?
Underestimating rehab costs (leading to budget overruns).
Overestimating after-repair value (ARV) (resulting in insufficient refinance proceeds).
Difficulty finding reliable tenants (impacting cash flow).
Higher interest rates (making refinancing less favorable).
Can You Use BRRRR with No Money Down?
While BRRRR aims to recycle capital, it’s rare to start with zero money. Investors typically need funds for the purchase, renovations, and holding costs. However, strategies like hard money loans, private lenders, or partnerships can minimize out-of-pocket expenses.
