BRRRR Method Calculator – Buy, Rehab, Rent, Refinance, Repeat Real Estate Model

Model the BRRRR real estate investing strategy. Calculate total cash-out refinance capital recovery, built-in equity, and ongoing post-refi monthly rental cash flow.

Purchase Price ($)

Total Rehab & Renovation Budget ($)

After-Repair Value (ARV Appraisal $)

Cash-Out Refi Max LTV (%)

Anticipated Monthly Market Rent ($)

Refinance Mortgage Interest Rate (%)

Capital Left in Deal

$0 (100% Capital Recycled)

Ready to deploy into next deal

Net Monthly Rental Cash Flow

+$412 / month

After debt service & opex

BRRRR Deal Execution Verdict: PERFECT BRRRR

New 75% Refinance Loan Proceeds:$264,600

Built-In Home Equity Created:$90,000 (25%)

The Seasoning Period Rule: Most conventional mortgage lenders mandate a 6-month 'seasoning period' (ownership duration) before approving cash-out refinances based on the newly appraised After-Repair Value (ARV) rather than original purchase price.

Real estate investment and tax model for informational simulation only. Projections exclude localized property transfer taxes and unexpected capital expenditures. Consult a licensed real estate broker or CPA.

The BRRRR Real Estate Method Explained

The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is the premiere wealth-building framework in residential real estate. It enables investors to acquire distressed properties, force significant equity through renovations, stabilize with quality tenants, and extract 100% of their initial capital via cash-out refinancing to fund subsequent property acquisitions.

The 5 Stages of the BRRRR Model

1. Buy: Purchase an undervalued, distressed property at a steep discount (often using hard money or private lending).
2. Rehab: Execute strategic, cost-effective renovations that directly boost appraisal value and market rental rates.
3. Rent: Secure reliable tenants at market rent to demonstrate debt service coverage.
4. Refinance: Secure a long-term conventional 30-year cash-out refinance at 75% of the newly appraised After-Repair Value (ARV), paying off original acquisition debt and recovering your cash.
5. Repeat: Roll the recovered capital directly into the next acquisition, scaling an equity portfolio with zero additional outside cash.

Frequently asked questions

What is a 'Perfect BRRRR'?

A 'Perfect BRRRR' occurs when the cash-out refinance proceeds equal or exceed 100% of your total purchase, rehab, and closing costs, leaving $0 of your personal money trapped in the deal while generating ongoing monthly cash flow.

How does an appraiser determine ARV?

Appraisers review recent sales ('comps') of renovated properties of similar square footage, age, and bedroom count within a 0.5 to 1-mile radius.

What are the risks of the BRRRR strategy?

Underestimating renovation costs, appraisal coming in lower than expected, or interest rate spikes reducing refinance cash flow are the primary financial risks.

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