The BRRRR Spreadsheet That Killed My Bad Deals (and Made the Good Ones Obvious)

After buying a dozen BRRRRs and walking away from many more, I built a one-page underwriting template that’s killed more bad deals than any single piece of advice I’ve gotten. Here’s the structure.

The five numbers that have to clear

A BRRRR works only if all five clear. Miss one and you have a long-term rental, not a BRRRR — which is fine, but you should know that going in.

1. All-in cost ≤ 75% of ARV. Purchase + rehab + carrying + closing.
2. Refi appraisal supported by three sold comps in the last 90 days within a half-mile.
3. Refi proceeds ≥ all-in cost. This is the “R” — recover the capital.
4. Cash flow ≥ $200/door/month after PITI, vacancy, capex, repairs, PM.
5. DSCR ≥ 1.20 at the refi rate, not today’s rate.

If any of those don’t clear in the underwrite, it’s not a BRRRR.

What gets people in trouble

• Optimistic ARV. “My agent thinks it’ll appraise for…” is not an ARV.
• Ignoring carry. Six months of carry can erase the spread.
• No refi rate buffer. Underwrite at +1.0% over today.
• Skipping PM cost. Even if you self-manage, price it in. Your time isn’t free.

The template

Download the one-page BRRRR template (Google Sheets). Make a copy, plug your numbers, and refuse to look at a deal until all five cells turn green.

The point isn’t the spreadsheet. The point is the discipline of refusing to fall in love with a property until the math says you can.