BRRRR Calculator for Rental Property (Free)

How the BRRRR method works

BRRRR stands for buy, rehab, rent, refinance, repeat. You buy below market value, fix the property up, rent it out, then refinance based on the new higher value. The new loan pays you back for the money you put in. The goal is to leave little or none of your cash in the property so you can do it again.

How this calculator works

• All-in cost is purchase price plus rehab plus closing and holding costs.
• New loan is the after-repair value times the refinance loan-to-value.
• Cash left in the deal is all-in cost plus refinance closing costs, minus the new loan.
• Cash flow uses rent after vacancy and costs, minus the new loan payment.

With the starting numbers, all-in cost is $166,000 and the new loan is $165,000, leaving $5,000 in the project. Estimated monthly cash flow is about $524 before a capital reserve, with $55,000 in equity before selling costs. Change the reserve input to reflect future major replacements.

Numbers that make or break a BRRRR

• After-repair value. Use recent sold comps, not listing prices. An optimistic value is the most common way these deals fall apart.
• Rehab cost. Add a contingency. Overruns eat the cash you planned to pull out. Try the rehab calculator.
• Holding costs. Interest, taxes, insurance and utilities keep running during the rehab.
• Lender rules. Loan-to-value limits and waiting periods for a cash-out refinance vary, so ask your lender early.
• Rent. It has to support the new payment with room to spare.

The 70% rule

A common starting guide says your maximum offer is 70% of the after-repair value minus rehab costs. The calculator shows that number. With the starting values it is $114,000, so the $120,000 purchase price sits just above it. Treat the rule as a screen, not a law, and let the full numbers decide.

Frequently asked questions

Can I get all my money back?

Sometimes. If the new loan is larger than your all-in cost plus refinance costs, the calculator shows the extra cash pulled out. Many deals leave some cash in.

How long before I can refinance?

It depends on the lender. Some require you to own the property for a set period before a cash-out refinance, often called seasoning. Ask before you buy.

What if I used a hard money loan?

Add the interest and fees to holding costs so your all-in cost reflects what you really spent.

Keep reading: BRRRR Method Numbers to Track, DSCR Calculator, Rental Cash Flow Calculator.

Loan payoff versus cash left in the deal

Net refinance proceeds equal the new loan minus the existing loan payoff and refinance fees. Cash left in the project equals total project cost plus refinance fees minus the new loan; this assumes the existing loan helped fund those same project costs and is fully repaid. Additional liens, lender reserves or costs outside the inputs require a separate adjustment. A negative net-proceeds figure means you need cash at closing. Cash-on-cash return is N/A when no original cash remains; that is not an unlimited return.