BRRRR Calculator

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a real estate investment strategy that allows investors to recycle capital across multiple deals. Instead of tying up cash in a single property, the BRRRR method lets you pull out most or all of your initial investment through a cash-out refinance after the property is renovated and rented, then redeploy that capital into the next deal.

The strategy works by purchasing a distressed property below market value, renovating it to increase its value (After Repair Value, or ARV), renting it to a qualified tenant, and then refinancing based on the new appraised value. If the ARV is high enough relative to your total investment, the refinance proceeds can return all of your original capital — leaving you with a cash-flowing rental property with little or none of your own money remaining in the deal. This is called an 'infinite return.'

The key metrics in a BRRRR deal are: total cash invested (purchase price + rehab + closing costs + holding costs), the ARV, the refinance loan amount (typically 70–75% of ARV), and the cash left in the deal after refinancing. A successful BRRRR deal leaves $0 or less in the deal. A partial BRRRR still recovers a significant portion of capital.

Holding costs are often overlooked in BRRRR analysis. These include financing costs during the rehab period (hard money loan interest, points, and fees), utilities, insurance, and property taxes during renovation. The longer the rehab takes, the more holding costs eat into your returns.

The BRRRR strategy requires more expertise than a standard buy-and-hold investment — you need to accurately estimate ARV, manage a renovation, and qualify for a refinance. But when executed well, it's one of the most powerful wealth-building strategies in real estate because it allows you to scale your portfolio without constantly needing new capital.