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Buy · Rehab · Rent · Refinance · Repeat

BRRRR calculator

The whole BRRRR strategy lives or dies on one number: how much of your capital comes back out at the refinance. This calculator answers that, then shows you whether the same property would do better as a flip or a straight buy and hold.

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The number that decides a BRRRR

BRRRR works when the refinance returns most of the cash you put in, leaving you with a cash-flowing property and your capital freed up for the next one. It fails quietly when the after-repair value comes in soft, the rehab runs over, or the refinance LTV will not stretch far enough — and you end up with your money trapped in a property that barely cash flows.

This calculator makes the failure visible before you buy. It reports cash left in the deal and percent of capital recycled as headline numbers, then runs the same property through a flip and two hold scenarios so you can see whether BRRRR is genuinely the best play or just the most exciting one.

Cash left in the deal

All-in cost minus refinance proceeds. If this is at or near zero, you have recycled your capital and your cash-on-cash return goes effectively infinite.

Capital recycled %

The honest BRRRR scorecard. Above 90% is strong, 70-90% is workable, below that and you are really just buying a rental with extra steps.

Post-refi cash flow

Rent minus operating expenses minus the new, larger loan payment. A BRRRR that recycles all your capital but bleeds $200 a month is not a win.

BRRRR vs Flip vs Hold

Same property, four exits, side by side — including the flip's ordinary-income tax treatment, which is the detail most flip math quietly skips.

Model it in four steps

1

Enter acquisition and rehab

Purchase price, closing costs, rehab budget, and your honest after-repair value. Pad the rehab — overruns are the single most common reason a BRRRR strands capital.

2

Set the hold and carry

Months from purchase to refinance, and your monthly carrying cost: taxes, insurance, utilities, and interest on any acquisition financing.

3

Set the refinance terms

Refi LTV and rate, plus refinance closing costs. Most lenders cap cash-out refis on investment property around 70-75% LTV — confirm yours before you count on it.

4

Compare the exits

Read cash left in and capital recycled first, then check the Flip and Hold cards to confirm BRRRR is actually the strongest play on this specific property.

A $180,000 buy with $40,000 of rehab and a $285,000 ARV

Purchase price$180,000
Rehab budget$40,000
Closing + carry (4 months)~$9,600
All-in project cost~$229,600
After-repair value$285,000
Refinance at 75% LTV$213,750
Cash left in the deal~$20,350
Capital recycled~91%
Illustrative only. Notice what moves the outcome: drop the ARV to $265,000 and the refinance returns roughly $15,000 less, pushing cash left in above $35,000 and capital recycled under 85%. The ARV and the rehab estimate are where BRRRR deals are won or lost — not the purchase price.

Get my BRRRR underwriting checklist

I will email the checklist I use to pressure-test a BRRRR before writing an offer — ARV comps, rehab padding, refi LTV traps — plus where these deals still exist in the Ankeny-to-Ames corridor.

Jackson Krile · Flanders Team at RE/MAX Real Estate Center · No spam, ever.

BRRRR questions worth answering before you buy

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat. You buy a property below market value, renovate it to raise the appraised value, place a tenant, refinance to pull your capital back out based on the new value, and use that capital to buy the next one.

What is a good capital recycled percentage?

Above 90% is a strong BRRRR — you get nearly all of your money back and can move to the next deal. Between 70% and 90% is workable if the cash flow is solid. Below 70%, you are tying up capital for a long time and should compare it honestly against simply buying a rental with a conventional loan.

What refinance LTV should I plan on?

Cash-out refinances on non-owner-occupied property commonly cap around 70-75% of appraised value, and seasoning requirements often mean waiting six to twelve months after purchase before the new value counts. Confirm both with your lender before you underwrite the deal — an assumed 80% LTV that comes back at 70% can strand tens of thousands of dollars.

How do I estimate after-repair value without guessing?

Pull recent sold comparables of similar size, age, and condition within a tight radius, and weight the ones that closed most recently. I can run MLS comps on a specific property for you — that is a normal part of what I do for investor clients, before you have committed to anything.

Is BRRRR better than flipping?

It depends entirely on the deal, which is why the calculator runs both. Flipping produces a faster paycheck but it is taxed as ordinary income if you hold under a year, and it builds no long-term position. BRRRR is slower and less liquid but leaves you owning a cash-flowing asset with your capital returned.

Does BRRRR still work at current rates?

It works on fewer properties than it did at 4% rates, because the higher refinance payment eats cash flow. The deals that still work generally have a wider spread between all-in cost and ARV. The calculator will tell you plainly when the numbers do not clear — that is the point of running it first.

Estimates are for educational use only. This is not financial, lending, tax, or investment advice, and it is not an appraisal. Rates, taxes, insurance, and PMI are estimates — confirm your actual numbers with your lender and tax professional.