Analyze your BRRRR deal: total investment, cash-out refinance proceeds, money left in deal, and cash-on-cash return.
Typically 70–75% for rentals
Tax, insurance, mgmt, maintenance
🎯 Full capital recycled!
After refi payments
| Purchase Price | $120,000 |
| Rehab Costs | $40,000 |
| Closing Costs (Buy) | $4,000 |
| Total Cash Invested | $164,000 |
| After-Repair Value (ARV) | $220,000 |
| Refi Loan (75% LTV) | $165,000 |
| Cash Pulled Out | $165,000 |
| Money Left in Deal | -$1,000 |
| Equity Retained | $55,000 |
| Monthly Cash Flow (Post-Refi) | $56 |
| Cash-on-Cash Return | ∞% |
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Total Invested = Purchase + Rehab + Closing Costs
Refi Loan = ARV × LTV%
Money Left in Deal = Total Invested − Refi Loan
CoC Return = Annual Cash Flow ÷ Money Left in Deal
BRRRR = Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property below market value, renovate it to increase ARV, rent it out to qualify for refinancing, then do a cash-out refinance to pull your capital out and invest again.
Total invested minus refinance proceeds. Invest $80K, pull out $75K via refi = $5K left in deal. Zero means you recycled all your capital (ideal BRRRR). Negative means you actually profited from the refi while keeping the rental!
Most conventional lenders allow 70–75% LTV on cash-out refinance for investment properties. Some portfolio lenders go to 80%. DSCR loans (based on rental income) are popular for BRRRR investors.
If you pull out all your invested cash via the refinance, your ongoing cash flow represents an infinite return — you have $0 of your own money in the deal, so any positive return is technically infinite. This is the holy grail of BRRRR.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.