The BRRRR calculator models the full Buy, Rehab, Rent, Refinance, Repeat cycle in one pass, answering the question that makes or breaks this strategy: after you refinance out of your rehab loan, how much of your own cash is still tied up in the property β and can you pull enough out to fund your next deal?
Arb Digital built this tool because BRRRR math has more moving parts than almost any other real estate strategy β purchase price, rehab budget, ARV, refinance terms, and ongoing cash flow all interact, and getting even one number wrong can turn a capital-recycling machine into a deal that ties up money indefinitely.
What This BRRRR Calculator Does
You enter your purchase price, rehab budget, other buying costs, the after-repair value, your expected refinance loan-to-value ratio, the new loan's interest rate, and your projected monthly rent and operating expenses. The calculator adds up everything you put into the deal, calculates how much a lender will let you pull out at refinance based on the ARV and LTV, and shows you the difference β your cash left in the deal. It also computes your new mortgage payment, monthly cash flow after that payment, and your cash-on-cash return on whatever cash remains tied up. If the refinance fully returns your capital, it flags that as an infinite-return outcome, since you'd have $0 of your own money left generating that cash flow.
How to Use It
- Enter the purchase price and rehab budget. Include a contingency in your rehab number β BRRRR deals routinely run over on renovation costs, and that overage is money that stays trapped in the deal.
- Add other buying costs. Closing costs, inspection fees, and any holding costs during the rehab period before the property is rented.
- Enter the ARV. Base this on a conservative, comp-supported estimate β lenders will order their own appraisal, and if it comes in below your number, your refinance proceeds shrink accordingly.
- Set your refinance LTV and rate. Most conventional and DSCR refinance products for investment properties cap loan-to-value in the 70-80% range; use the actual terms your lender is quoting, not a best-case guess.
- Enter rent and operating expenses. Use realistic market rent and include property taxes, insurance, maintenance reserves, vacancy allowance, and management if applicable in your expense figure.
- Read your cash-left-in-deal number. This is the figure that determines whether you can repeat the process immediately or need to save additional capital before your next purchase.
The Formula / How It's Calculated
Total cash invested is Purchase Price + Rehab Cost + Other Buying Costs. Refinance proceeds are ARV Γ Refinance LTV%. Cash left in the deal is Total Cash Invested β Refinance Proceeds β if that number is zero or negative, you've recycled 100% of your capital (and possibly pulled out extra). The new monthly mortgage payment uses a standard 30-year amortization formula on the refinance loan amount at your entered rate. Monthly cash flow is Rent β Operating Expenses β New Mortgage Payment, and cash-on-cash return on remaining capital is Annual Cash Flow Γ· Cash Left in Deal Γ 100 β when there's no cash left in the deal, that return is technically infinite, since you're generating cash flow on $0 of your own money.
The Consumer Financial Protection Bureau publishes general guidance on cash-out refinancing and how lenders evaluate loan-to-value on refinance transactions, which is useful background reading before you assume a specific LTV on a BRRRR refinance; see consumerfinance.gov for more detail on how cash-out refinances are structured and underwritten.
The Whole Point: Recycling Your Capital
BRRRR isn't really a rental strategy in the traditional sense β it's a capital velocity strategy. A conventional buy-and-hold investor puts down 20-25% cash and that money stays parked in the property for as long as they own it. A BRRRR investor buys with cash or a short-term rehab loan, forces appreciation through renovation, then refinances at the new, higher appraised value to pull most or all of that initial cash back out β while keeping the property, the tenant, and the ongoing cash flow. If it works as designed, the same pool of capital that bought one property can be recycled to buy a second, then a third, without ever raising new money.
That's why "cash left in the deal" is the single most important number this calculator produces. A deal that recycles 100% of your capital lets you repeat immediately β that's the entire engine of the strategy, and it's why experienced BRRRR investors obsess over the spread between their all-in cost and their refinance proceeds far more than they obsess over cash flow alone. A deal that leaves $40,000 trapped isn't necessarily bad, but it means your next purchase is delayed until you either save that amount again or pull equity from somewhere else.
What Determines How Much Cash Recycles
Three variables drive this outcome more than any others. First, the spread between your all-in cost and the ARV: the bigger the value you force through renovation relative to what you spent getting there, the more room there is for a refinance to return your capital. Second, the refinance LTV your lender allows: a 75% LTV refinance on the same ARV pulls out meaningfully more cash than a 65% LTV refinance, so shopping refinance terms across multiple lenders β conventional, portfolio, and DSCR products β is worth real effort on a BRRRR deal. Third, appraisal risk: your own ARV estimate is just an estimate until a licensed appraiser signs off on it, and a conservative appraisal can shrink your refinance proceeds well below what you modeled going in, leaving more cash trapped than planned.
Seasoning requirements also matter and this calculator doesn't model them directly: many lenders require you to own the property for a minimum period β commonly six to twelve months β before they'll refinance based on the new appraised value rather than your original purchase price. Confirm your specific lender's seasoning rule before you assume a fast refinance timeline.
Cash Flow After the Refinance
Pulling your capital back out through a refinance isn't free β it comes with a new, larger mortgage payment than you'd have if you kept a smaller loan in place, and that payment eats directly into monthly cash flow. This calculator's monthly cash flow figure already accounts for that new payment, which is why a deal can show a fully recycled capital position (infinite return) alongside a fairly thin monthly cash flow number. Both things can be true at once: you got your money back, and the ongoing income is modest. Whether that trade-off is worth it depends on your goals β investors focused on portfolio growth often accept thinner per-property cash flow in exchange for the ability to keep buying, while investors focused on passive income may prefer a smaller refinance and higher monthly cash flow instead.
A BRRRR deal starts with a good purchase. Run the numbers against the 70 percent rule calculator before you commit to a rehab budget.
Try the 70% Rule Calculator All Free ToolsCommon Mistakes to Avoid
- Using an optimistic ARV. If the appraiser's number comes in lower than yours, your refinance proceeds shrink and more cash stays trapped than planned.
- Underbudgeting the rehab. Every dollar over budget on renovation is a dollar that has to be recovered through refinance proceeds or stays in the deal permanently.
- Ignoring lender seasoning requirements. Many refinance products require several months of ownership before they'll lend against the new appraised value.
- Forgetting closing costs on the refinance itself. The new loan typically carries its own origination fees and closing costs, which reduce your net proceeds.
- Chasing 100% capital recycling at the expense of cash flow. Maxing out refinance proceeds increases the new loan balance and payment, which can push monthly cash flow uncomfortably thin or negative.
- Not shopping multiple lenders for the refinance. LTV limits and rates vary meaningfully between conventional, portfolio, and DSCR lenders on investment property refinances.
Related Free Tools From Arb Digital
Before you commit to a BRRRR purchase, check the entry price against the 70 percent rule calculator or screen it with the 1 percent rule calculator. Once stabilized, compare the property's ongoing return with the cap rate calculator and the cash-on-cash return calculator, or run a fast valuation comparison with the gross rent multiplier calculator. See the complete free online tools hub for more.
Frequently Asked Questions
Buy, Rehab, Rent, Refinance, Repeat. It's a strategy for buying a distressed property, renovating it to raise its value, renting it out, then refinancing based on the new value to pull cash back out and repeat the process on another property.
It's the amount of your own money still tied up in the property after the refinance, calculated as total cash invested minus refinance proceeds. A lower number means more of your capital has been recycled and is available for the next purchase.
It happens when refinance proceeds equal or exceed your total cash invested, meaning you have $0 or less of your own money left in the property while it still generates cash flow, which is technically an infinite return on the remaining capital.
Many conventional and DSCR investment property refinance products cap loan-to-value in the 70-80% range, though the exact figure varies by lender, loan program, and borrower qualifications.
Your refinance proceeds are based on the appraiser's after-repair value, not your own estimate. A conservative appraisal reduces refinance proceeds and leaves more of your cash trapped in the deal than you originally modeled.
Not necessarily. Maximizing refinance proceeds increases your new loan balance and monthly payment, which reduces ongoing cash flow. The right balance depends on whether your priority is capital recycling for growth or steady monthly income.
This tool provides general estimates for educational purposes only and is not financial, tax, legal, or medical advice. Figures are illustrative; consult a licensed professional for decisions.
