BRRRR Calculator
Buy, rehab, rent, refinance, repeat: how much of your capital comes back out, and how much stays in.
The refinance returns everything you put in, which is what makes the capital reusable on the next deal. Cash returned is capped at what you invested: a loan larger than your basis is borrowed equity, not profit, and it still has to be repaid.
BRRRR works by recycling the same capital. You buy something that needs work, fix it, rent it, then refinance against the higher value and use the proceeds to do it again. The number that decides whether the strategy is working is cash left in the deal, because that is capital no longer available for the next one.
Worked example. Buy at $120,000, spend $25,000 on rehab, and another $5,000 on holding and closing, so $150,000 is invested. It appraises at $220,000 and the lender refinances at 75% LTV, a $165,000 loan. That pays back the full $150,000, leaves nothing trapped, and still leaves $55,000 of equity in the property.
Frequently asked questions
What LTV do refinance lenders offer?
Commonly 70 to 75% of appraised value on an investment property, sometimes 80% for a strong borrower. Anything above that is rare and usually more expensive. Underwriting at 75% and being pleasantly surprised is safer than the reverse.
What is a seasoning period?
The time a lender requires you to own the property before refinancing against the new value rather than your purchase price. Six to twelve months is typical, and it matters because your money is illiquid for that whole period. Confirm it before you buy, not after the rehab is done.
Why does my rehab always cost more than budgeted?
Because the scope grows once walls are open. Experienced investors add a contingency of 10 to 20% and treat the timeline as longer than quoted. Both the extra cost and the extra months of holding costs land in your total invested, which is exactly what the refinance has to cover.
Does leaving cash in the deal mean it failed?
Not necessarily. A property that cash flows well and holds real equity can be a good outcome even if capital stays in it. It just means this deal did not fund the next one, so the compounding that makes BRRRR attractive slows down.
Related tools
Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.