For real estate investors
BRRRR Calculator (Buy, Rehab, Rent, Refinance, Repeat)
BRRRR (Buy, Rehab, Rent, Refinance, Repeat) only works if the refinance pulls most of your money back out. Enter your numbers to see how much cash is left in the deal, what the property cash flows and what you earn on the money that stays in.
Calculator and results
Money in and out
- Total cash invested
- $164,000
- Refinance loan amount
- $165,000
- Cash out at refinance
- $161,000
- Cash left in deal
- $3,000
Rental performance
- Monthly principal and interest
- $1,154
- Monthly operating expenses
- $973
- Monthly cash flow
- $173
- Annual cash flow
- $2,080
- Cash-on-cash return
- 69.3%
- DSCR
- 1.50x
For estimates only. Not financial, tax or lending advice.
How it’s calculated
- Total cash invested is everything you put in before the refinance: purchase price, purchase closing costs, rehab and holding costs.
- The refinance loan is the after-repair value (ARV) times the loan-to-value (LTV) the new lender allows. Cash out at refinance is that loan minus the refinance closing costs.
- Cash left in deal is total cash invested minus cash out. If it is zero or negative, you got all your money back (or more) and the return on the money you left in is effectively infinite.
- Monthly cash flow is rent minus vacancy, repairs, capital expenditures and management (each a percentage of rent), minus taxes, insurance, HOA and the monthly principal and interest on the new loan.
- Cash-on-cash return is yearly cash flow divided by the cash left in the deal. DSCR is monthly rent divided by principal and interest plus taxes, insurance and HOA.
BRRRR Calculator questions
What does BRRRR stand for?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, renovate it, rent it, refinance into a long-term loan and use the money that comes out to repeat the process.
What is “cash left in the deal”?
It is the cash you put in (purchase, closing, rehab and holding costs) minus the cash you take out at the refinance after closing costs. The lower it is, the further your money goes.
What is a good cash-on-cash return for a BRRRR?
There is no single answer, because it depends on your market and goals. Because BRRRR can leave very little cash in a deal, returns can look high, so also check monthly cash flow and DSCR.
What does DSCR mean here?
DSCR is the debt service coverage ratio. This calculator uses monthly rent divided by principal and interest plus taxes, insurance and HOA. Lenders often look for 1.0 or higher, and each lender sets its own minimum.
Does this include my acquisition loan?
No. Holding costs are entered as one number. If you borrowed to buy or rehab, include the interest in holding costs and treat the amounts you funded yourself as cash invested.
Keep the deal, the budget and the numbers together.
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