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FinToolSuite
Updated May 14, 2026 · Real Estate · Educational use only ·

BRRRR Calculator

Buy-rehab-rent-refinance returns.

Calculate BRRRR strategy returns by modeling purchase price, rehab costs, ARV, refinance LTV, and rent to estimate recycled cash and cash-on-cash return.

What this tool does

The BRRRR property strategy cycles capital by purchasing a property, investing in improvements, leasing it out, then refinancing to recover initial funds for the next deal. This calculator models that workflow by taking your purchase price, rehabilitation costs, projected after-repair value, refinance loan-to-value ratio, and expected monthly rent and expenses. It estimates the cash remaining in the deal after refinancing and calculates the cash-on-cash return on that trapped capital. The result shows how much capital recycles back to you and the annual percentage return it generates. The refinance amount—determined by your LTV and property value—has the largest effect on remaining cash. A typical scenario involves an investor funding the purchase and rehab upfront, then using rental income against expenses to measure returns. The calculator assumes the property refinances at the stated LTV and does not account for transaction costs, vacancy rates, tax treatment, or debt servicing beyond monthly expenses.


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Formula Used
Purchase
Rehab
After repair value
Refi LTV %

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) calculator measures cash recovery from forced-appreciation property strategy. Buy distressed property below market, renovate to After Repair Value (ARV), rent, refinance at 75% LTV of ARV. If refi covers original investment, you've created infinite ROI - all cash recovered, property generating income.

Example: 100k purchase + 30k rehab = 130k total. ARV 200k. 75% LTV refi = 150k. Cash recovered 150k vs 130k invested = 20k cash back plus property generating rent. Cash left in deal: 0. Annual cash flow 6k = infinite return on 0 invested. Repeat the process.

BRRRR mathematics work when ARV substantially exceeds total cost. Hard money loans for purchase + rehab phase, then refinance into 30-year mortgage. Critical risk: ARV doesn't materialise. 100k + 30k = 130k investment with 150k ARV (instead of expected 200k) = refi only 112k = 18k stuck in deal. Conservative ARV estimates essential.

A worked example

Try the defaults: purchase price of 100,000, rehab cost of 30,000, after repair value of 200,000, refinance ltv of 75%. The tool returns -20,000.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Purchase Price, Rehab Cost, After Repair Value (ARV), Refinance LTV %, and Monthly Rent. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

The formula behind this

Cash left in deal = total investment - refinance amount. CoC = annual cash flow / cash left. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Where this fits in planning

This is a "what-if" tool, not a forecast. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. The number represents one scenario rather than a forecast.

Example Scenario

££100,000£30,000 - ££200,000×75% refi = -20,000.00 left in deal.

Inputs

Purchase Price:£100,000
Rehab Cost:£30,000
After Repair Value (ARV):£200,000
Refinance LTV %:75
Monthly Rent:£1,500
Monthly Expenses:£1,000
Expected Result-20,000.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes cash remaining in the deal by summing the purchase price and rehab cost, then subtracting the refinance amount (calculated as after-repair value multiplied by the refinance loan-to-value percentage). This residual represents your net capital deployed in the property. Cash-on-cash return is then derived by dividing annual net cash flow—calculated as monthly rental income minus monthly operating expenses, multiplied by twelve—by the cash left in the deal. The model assumes a constant monthly rent and expense profile throughout the year, treats the refinance as occurring at a fixed loan-to-value ratio based on the after-repair value, and does not account for acquisition or refinance costs, vacancy rates, maintenance variability, appreciation, or tax implications.

Frequently Asked Questions

BRRRR success criteria?
ARV substantially exceeds purchase + rehab. Rule of thumb: ARV ≥ 1.4 × (purchase + rehab) for profitable BRRRR. 75% LTV refi = 75% of ARV recovered = 105% of total cost when ARV/cost = 1.4. Below 1.4x = some cash stuck in deal. Above 1.4x = potentially all cash recovered.
Risks of BRRRR?
(1) ARV doesn't materialise (overpaid for area, market downturn). (2) Rehab over budget (always assume 20-30% overrun). (3) Refi falls through (rates rise, lender backs out, valuation low). (4) Vacancy during rehab/lease-up. (5) Hard money loan terms expire before refi closes. Worst case: stuck with high-interest hard money debt on under-valued property.
Hard money vs traditional financing?
Hard money: 10-15% rate, 12-24 month term, 65-75% LTV, fast close. Right for BRRRR purchase phase. Traditional bank: lower rate but won't fund distressed properties needing major rehab. Sequence: hard money → rehab → traditional refi at 75% LTV of ARV → repeat.
Infinite ROI - real or marketing?
Real if ARV > 1.33x total cost. 100k cost, 133k ARV, 75% refi = 100k back. Cash left in = 0. Property cash flow on 0 = infinite %. But ROI math is misleading - meaningful return measure is total units made over time, not %. Even 200/month cash flow over 30 years on recovered cash is 72k - significant absolute return.

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