BRRRR Deal Calculator — Buy, Rehab, Rent, Refinance, Repeat

Frequently Asked Questions

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat. The strategy involves purchasing a distressed property, renovating it to increase its value, renting it out, then doing a cash-out refinance based on the new appraised value to pull your capital back out and deploy it into the next deal.

What is a good cash-out amount for a BRRRR deal?

The goal is to recover 100% of your invested capital (purchase price + rehab costs + carrying costs). A "full BRRRR" returns all your cash so you have nothing left in the deal. Recovering 75–80% is still considered a solid deal. If you can only recover 50% or less, the deal may not be worth the effort compared to a traditional buy-and-hold.

Why does the after-repair value matter so much?

The cash-out refinance is based on the after-repair value (ARV), not what you paid for the property. A lender will typically lend 70–75% of ARV. If your ARV estimate is off, your refinance proceeds will be too — so conservative ARV estimates are critical when underwriting a BRRRR deal.

Does the property need to cash flow after the refinance?

Yes. After the cash-out refinance, you now have a larger loan balance and a higher monthly payment. If the rent doesn't cover the new mortgage, taxes, insurance, and reserves, the deal has negative cash flow. Always model the post-refinance cash flow, not just the capital recovery.

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