BRRRR Calculator
Will the refi recover your capital? Check the 5 numbers a BRRRR has to clear.
Inputs
Edit any field — results recompute instantly.
What the property will appraise for post-renovation, supported by 3+ sold comps.
Standard cash-out refi caps at 75% LTV on an investment property.
Plan on +100-200 bps over conventional primary-residence rates.
Results
Computed live from your inputs.
Negative = perfect BRRRR (you recovered everything). Positive = capital trapped in the deal.
Target $200+/door positive after all reserves.
Most DSCR lenders require 1.20+ to refi cleanly.
What this calculator does
A BRRRR deal works only when the refi appraisal supports a loan large enough to recover the original purchase + rehab + carrying costs. This calculator runs the full math — all-in cost, refi proceeds, capital left in deal, monthly cash flow, and DSCR at the refi rate.
How to underwrite a BRRRR deal
- Estimate the refi ARV from 3+ sold comps within 0.5 miles in the last 90 days, matched on bedrooms / bathrooms / square footage / condition.
- Total your all-in cost: purchase + rehab + carrying + closing.
- Compute refi proceeds at 75% LTV on the ARV.
- Subtract proceeds from all-in cost — if positive, that's capital you'll leave in the deal.
- Compute monthly cash flow after PITI + property management + vacancy reserve + capex reserve.
- Verify DSCR clears 1.20 minimum at the refi rate (not today's rate).
- If any number fails, walk or renegotiate.
Terms worth knowing.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a real-estate investing strategy where an investor buys a distressed property cheap, renovates it, rents it out, refinances at the improved appraisal to recover most or all of the original capital, then repeats the process with the recovered capital.
After Repair Value (ARV) is the projected market value of a property after all planned renovations are complete, based on recently-sold comparable properties in similar condition within a half-mile radius. It is the single most important number in any flip or BRRRR underwrite.
Debt Service Coverage Ratio (DSCR) is the ratio of a property's annual net operating income to its annual debt service. A DSCR of 1.20 means the property generates 20% more income than it needs to cover the loan payment. Most DSCR lenders require 1.10-1.25 to underwrite.
A cash-out refinance is a mortgage refinance for more than the existing loan balance, with the difference paid to the borrower in cash. Used by BRRRR investors to recover capital after stabilizing a rental property, by long-term holders to access appreciated equity.
CapEx is the budget set aside for major property components with finite lifespans — roof, HVAC, water heater, appliances, exterior paint. CapEx differs from maintenance (which covers ongoing repairs) and is a critical line in any honest rental underwrite.
Loan-to-value ratio (LTV) is the loan amount divided by the property's appraised value, expressed as a percentage. LTV drives lender pricing, down payment requirements, and PMI thresholds. Lower LTV = lower risk to lender = better rates and terms.
More REI math tools.
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