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HomeReal EstateBRRRR Calculator

BRRRR Calculator

Analyze your BRRRR deal: total investment, cash-out refinance proceeds, money left in deal, and cash-on-cash return.

Auto-updated May 11, 2026 · Verified daily against IRS, Fed & Treasury sources

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BRRRR Calculator

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Typically 70–75% for rentals

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Tax, insurance, mgmt, maintenance

Assumptions· 2026

  • ·BRRRR: Buy, Rehab, Rent, Refinance, Repeat — five-phase return calculation
  • ·ARV (after-repair value) drives cash-out refinance proceeds at entered LTV (typically 75%)
  • ·Cash-out refi proceeds vs. all-in cost determines capital recovered and equity left in deal
  • ·Cash-on-cash return and equity built through refinance both shown for post-refi position
When this is wrong
  • ·Seasoning requirements: most lenders require 6–12 months ownership before cash-out refinance
  • ·Rehab cost overrun risk — budget 10–20% contingency over initial contractor estimates
  • ·Vacancy and lease-up time between rehab completion and rent commencement reduces year-1 yield
  • ·Depreciation recapture (25%) and capital gains on eventual disposition
Assumptions· 2026▾
  • ·BRRRR: Buy, Rehab, Rent, Refinance, Repeat — five-phase return calculation
  • ·ARV (after-repair value) drives cash-out refinance proceeds at entered LTV (typically 75%)
  • ·Cash-out refi proceeds vs. all-in cost determines capital recovered and equity left in deal
  • ·Cash-on-cash return and equity built through refinance both shown for post-refi position
When this is wrong
  • ·Seasoning requirements: most lenders require 6–12 months ownership before cash-out refinance
  • ·Rehab cost overrun risk — budget 10–20% contingency over initial contractor estimates
  • ·Vacancy and lease-up time between rehab completion and rent commencement reduces year-1 yield
  • ·Depreciation recapture (25%) and capital gains on eventual disposition
Real-world example: Ohio family buying their first home▾

The Chen family is buying a $340,000 home in Columbus, Ohio. Combined income $115,000, 10% down payment, 30-year fixed at 7.125%.

  • Purchase price: $340,000
  • Down payment: $34,000 (10%)
  • Loan amount: $306,000
  • Rate: 7.125%
  • Term: 30 years
  • Property tax (Franklin Co.): ~1.7%
  • Homeowners insurance: ~$1,400/yr
All-in monthly cost (PITI)
~$2,800/month

Takeaway: Columbus/Franklin County averages are the reference baseline. Property tax rates and insurance premiums shift significantly by ZIP code and HOA status. Plug your actual numbers in above.

When this calculator is wrong▾
  • Property tax rates vary by county, not just state

    We default to state-average millage rates. County and municipal rates vary 40%+ within a single state. Ohio ranges from 0.8% (rural counties) to 2.4% (Cuyahoga/Cleveland area). Always cross-check your specific county assessor's published effective rate.

    Property Tax by State
  • HOA fees are excluded from most calculators

    Homeowner association fees add $100-$800/month in condos and planned communities. Condos in urban markets often run $400-$700/month. If your property has HOA, add it manually to any payment estimate — it directly affects your debt-to-income ratio for loan qualification.

    HOA Fee Calculator
  • Closing costs are not included in purchase price inputs

    Closing costs typically run 2-5% of the loan amount — around $6,000-$15,000 on a $300K home. Lender fees, title insurance, escrow, and prepaid taxes add up fast. These are due at closing in cash, not rolled into the mortgage by default.

    Closing Costs Calculator
  • PMI is omitted when down payment is under 20%

    Private mortgage insurance (PMI) costs 0.5-1.5% of the loan annually until you reach 20% equity. On a $300K loan at 1%, that's $250/month. PMI cancels automatically at 78% LTV under federal law — but you can request removal at 80%.

  • Appreciation assumptions may not match your market

    National home price appreciation has averaged ~4% annually since 1968, but markets diverge dramatically. Sun Belt metros averaged 10%+ during 2020-2022; coastal markets often lag the national average during correction cycles. Local supply constraints are the main driver.

  • Capital gains exclusion is not modeled by default

    If you've lived in the home 2 of the last 5 years, you can exclude $250K (single) or $500K (married) of gain from federal capital gains tax. Many calculators show gross profit without applying this exclusion. Relevant when projecting sale proceeds.

    Home Sale Capital Gains Calculator

Related Calculators

Cash-on-Cash Return Calculator →Cap Rate Calculator 2026 →Rental Yield Calculator →
Your Results

Based on your inputs

ℹ️Demo numbers — replace inputs to see yours
Money Left in Deal
-$1,000negativepositive trend

🎯 Full capital recycled!

Cash-on-Cash Return
∞%positivepositive trend

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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Decision guides

How Much House Can I Afford?
Real income-to-mortgage math before you shop.
Rent vs. Buy: The Full Picture
Break-even timeline + hidden costs compared.
First-Time Homebuyer Checklist
Step-by-step from offer to close.

Deep-dive articles

⚡ Key Takeaways

  • BRRRR = Buy distressed → Rehab → Rent → Refi (cash-out) → Repeat
  • Goal: pull out all invested capital via refinance, keeping the property
  • ARV-based refinance is key — buy at 65–70% of ARV minus rehab costs
  • Lenders typically allow 70–75% LTV on investment property cash-out refi
  • Zero money left in deal = infinite CoC return

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.

Look for distressed properties 20-30% below ARV through foreclosures, auctions, wholesalers, direct mail campaigns, and driving for dollars. MLS-listed properties rarely have enough margin. Build relationships with wholesalers for consistent deal flow.

Most lenders require a 6-month seasoning period before cash-out refinancing. Some DSCR lenders allow refinancing with no seasoning using the appraised value. Plan rehab timeline to finish well before the seasoning period ends.

Budget $15-$30 per square foot for cosmetic rehabs (paint, flooring, fixtures) and $40-$80+ for gut renovations. Always add 15-20% contingency for unexpected issues. Kitchens and bathrooms drive the most ARV increase per dollar spent.

Main risks include overestimating ARV, rehab cost overruns, long vacancy during renovation, appraisal coming in low at refinance, and rising interest rates increasing refinance costs. Mitigate by being conservative on ARV estimates and padding rehab budgets.

Yes, hard money loans are the most common funding for BRRRR acquisitions. They fund 70-90% of purchase plus rehab at 10-14% interest. Points cost 1-3% upfront. The key is refinancing into a permanent loan quickly to minimize carrying costs.

Analyze 3-5 comparable recently sold properties within a half mile that match your planned post-rehab condition. Adjust for differences in square footage, bedrooms, and finishes. Conservative ARV estimates protect against appraisal shortfalls at refinance.

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

Published byJere Salmisto· Founder, CalcFiReviewed byCalcFi EditorialEditorial standardsMethodologyLast updated May 12, 2026

Primary sources & authoritative references

Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.

  • HUD — U.S. Department of Housing and Urban Development — HUD (opens in new tab)
  • FHFA — Federal Housing Finance Agency — FHFA (opens in new tab)

Found an error in a formula or source? Report it →

Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.