BRRRR CalculatorBuy, rehab, rent, refinance, repeat: see how much cash you get back and how fast you can do it again
Model the full BRRRR method in one place: a hard money purchase and rehab loan, holding costs and points, rent and operating expenses, and the cash-out refinance at the after-repair value. You’ll see the cash left in the deal, your cash flow after the refi, and how many properties that recycled capital can buy over the next five years.
By Manzoor Ahmad · 13+ years of web development & SEO experienceUpdated October 20, 2026 with current lending terms
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Your deal, stage by stage
Your cash, month by month
Cumulative cash you have tied up in the deal, from closing through rehab and lease-up to the cash-out refinance.
Deal checks
The screens experienced BRRRR investors and DSCR lenders apply.
Repeat: what recycled capital can build
Assumes each new deal looks like this one and you start the next as soon as the previous refinance closes.
What is the BRRRR method?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property below market value, renovate it, rent it out, then refinance at the higher after-repair value to pull most or all of your cash back out, and use that cash to do it again. Done well, you end up owning a cash-flowing rental with little or none of your own money left in it.
Find a property that needs work, usually with cash, a hard money loan or a line of credit on your own home (see the HELOC calculator), at a price that leaves room for the rehab.
Renovate the things that raise value and rent most: kitchens, baths, layout, systems and curb appeal.
Place a qualified tenant at market rent. The lease supports both the appraisal and your DSCR refinance.
Replace the short-term loan with a long-term mortgage at 70%–80% of the new appraised value.
Use the cash returned at refinance as the down payment and rehab money for the next property.
How to calculate a BRRRR deal
Price + closing + rehab + contingency + points + loan interest + holding costsAll-in cost − short-term loan amountARV × refi LTV − short-term loan payoff − refi closing costsCash invested − cash back − rent collected before refiARV − new loanAnnual cash flow ÷ cash left in the deal (infinite if ≤ $0)Worked example (the calculator’s defaults): a $140,000 purchase with a $40,000 rehab (+10% contingency) funded by a hard money loan at 11% and 2 points. All-in cost, including about $11,400 of points and interest, comes to roughly $201,200, of which about $38,200 is your own cash. Six months later the home appraises at $270,000; a 75% cash-out refinance of $202,500 pays off the $163,000 hard money loan and about $5,060 of closing costs, returning about $34,400. With one month of rent collected before the refi, about 94% of your cash comes back, leaving roughly $2,400 in a property with $67,500 of equity and a 1.31 DSCR. After the refinance the cash flow is close to break-even once full repair and CapEx reserves are counted, which is typical at 2026 rates.
The 70% rule for BRRRR
Pay no more than 70% of the after-repair value, minus the rehab cost. On a $270,000 ARV with a $44,000 rehab, that’s $270,000 × 0.70 − $44,000 = $145,000.
The 30% cushion covers closing, holding and financing costs and lets a 75% refinance return most of your money. In expensive markets investors sometimes stretch to 75%, accepting that more cash stays in the deal.
BRRRR financing: hard money in, DSCR refinance out
Most BRRRR investors use two loans: a short-term hard money or bridge loan to buy and renovate, then a long-term rental loan, often a DSCR loan, to refinance.
| Term | Hard money (buy + rehab) | Cash-out refinance (DSCR) |
|---|---|---|
| Interest rate | 9%–12% for residential fix-and-flip | About 6.6%–7.5% depending on LTV and DSCR |
| Points / fees | 1–3 points | Closing costs ~2%–3%; optional points |
| Max loan | 70%–75% of ARV; often ~85–90% of price + 100% of rehab | 70%–80% of appraised value |
| Term | 6–18 months | 30 years, fixed or interest-only |
| Seasoning | — | Often 6 months to use the new value; some lenders sooner |
| Qualifies on | The deal and your experience | Rent ÷ PITIA (DSCR), credit and reserves |
| Watch for | Draw schedules, extension fees of 0.5%–1% | Step-down prepayment penalties of 3–5 years |
Test whether the stabilized rent will qualify before you buy: run the after-repair rent and new loan through the DSCR calculator. If the numbers only work as a sale, compare the exit in the house flip calculator.
BRRRR vs. flipping vs. buy-and-hold
| Strategy | Cash needed | Income | Main risk |
|---|---|---|---|
| BRRRR | High at first, mostly returned at refinance | Monthly rent plus equity | Appraisal or rent below plan traps cash in the deal |
| Fix and flip | High until sale | One-time profit, taxed as ordinary income if held under a year | Market softening during the project |
| Buy-and-hold | 20%–25% down stays invested | Monthly rent and appreciation | Slower to scale; thin cash flow at today’s rates |
For a conventional purchase without a rehab, the rental property calculator projects cash flow and returns over 30 years. Once a BRRRR property is refinanced, its cash-on-cash return is measured on the cash left in the deal, which is why a full BRRRR can show an “infinite” return.
BRRRR risks to stress-test
Every $10,000 short on ARV leaves $7,500 more of your cash in the deal at a 75% refinance. Lower the ARV in the calculator to see your margin.
Each extra month adds hard money interest and holding costs. Keep a 10%–20% contingency.
A higher rate lowers cash flow and DSCR, and may cut the loan amount a lender will approve.
If a lender won’t use the new value for six or twelve months, your capital stays tied up longer and you pay more interest.
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BRRRR questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. It’s a rental investing strategy that uses a cash-out refinance after renovation to recover the money you put in, so you can buy the next property.
How do you calculate a BRRRR deal?
Add up the all-in cost (price, closing, rehab, financing and holding costs), subtract the short-term loan to find your cash invested, then subtract the cash returned at refinance (ARV × refi LTV minus the loan payoff and refi costs). What remains is the cash left in the deal.
What is a good BRRRR deal?
One that returns most or all of your cash at refinance, stays cash-flow positive after realistic reserves, and qualifies for a DSCR of at least 1.0 to 1.25. Buying at or below 70% of ARV minus rehab makes that much more likely.
How long do you have to wait to refinance a BRRRR property?
Many lenders require about six months of ownership (seasoning) before they’ll lend on the new appraised value instead of your purchase price. Some DSCR and portfolio lenders allow it sooner.
How much can you cash out on a BRRRR refinance?
Usually 70% to 80% of the appraised after-repair value, minus the payoff of your short-term loan and the refinance closing costs.
What is the 70% rule in BRRRR?
Pay no more than 70% of the after-repair value minus rehab costs. On a $270,000 ARV with $44,000 of repairs, the maximum offer is $145,000.
Can you BRRRR with a DSCR loan?
Yes. DSCR loans are a common BRRRR refinance because they qualify on the property’s rent rather than your personal income, can close in an LLC and have no limit on the number of financed properties.
What is an infinite return in BRRRR?
When the refinance returns all of your invested cash, you have $0 left in the deal, so any positive cash flow is an infinite cash-on-cash return.
Is BRRRR still worth it in 2026?
It can be, but higher rates make cash flow tighter after the refinance. Deals now need a bigger discount or a bigger value jump from the rehab, and many investors accept leaving some cash in the deal in exchange for equity.
What are the biggest BRRRR risks?
A low appraisal, rehab overruns, rising refinance rates, slow lease-up and seasoning delays. Each traps more cash in the deal or raises holding costs.
Do you pay taxes on BRRRR cash-out refinance money?
Generally no. Loan proceeds aren’t taxable income because you have to repay them. Tax applies when you sell, including recapture of any depreciation claimed.
Is this BRRRR calculator free and private?
Yes. It’s free, needs no sign-up and runs entirely in your browser. Nothing you enter is sent to DexoCalc or stored.
Manzoor Ahmad
13+ years of web development & SEO experience · Founder, DexoCalc
Manzoor builds and maintains every DexoCalc calculator, including the full property and investing libraries. This BRRRR calculator models hard money interest on draws, points, holding costs, rent collected before the refinance, cash-out at the after-repair value, post-refi DSCR and a five-year capital-recycling projection.
Sources
This calculator is for planning and education, not lending, tax or investment advice. Loan terms, appraisals and seasoning rules vary by lender and market; verify every figure before you commit to a deal.