BRRRR Calculator
Calculate your BRRRR strategy returns: Buy, Rehab, Rent, Refinance, Repeat. Analyze cash-on-cash return, equity capture, and infinite ROI potential.
📊 Investment Details
1️⃣ Purchase Phase
2️⃣ Rehab Phase
3️⃣ Refinance Phase
4️⃣ Rent Phase
💰 Investment Summary
📈 Cash Flow Analysis
🎯 ROI Metrics
Understanding BRRRR Strategy
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. This real estate investment strategy allows investors to recycle their capital by pulling out most or all of their initial investment through refinancing after adding value through renovations. When executed properly, you can achieve "infinite returns" by having zero cash left in the deal while maintaining positive cash flow and equity position. The key is buying below market, adding value cost-effectively, and refinancing at 75-80% LTV of the new higher value.
About This Calculator
Calculate BRRRR strategy returns - Buy, Rehab, Rent, Refinance, Repeat. Estimate cash-on-cash return, equity capture, and infinite ROI. Analyze renovation costs, ARV (After Repair Value), cash-out refinance proceeds, and rental cash flow. Plan real estate investment scaling with repeatable equity extraction in 2025.
Frequently Asked Questions
What is the BRRRR strategy and how does it work?
BRRRR = Buy, Rehab, Rent, Refinance, Repeat - a real estate investing strategy to recycle capital. Process: (1) Buy distressed property below market value (typically 70-80% of ARV). (2) Rehab to increase value (budget 20-30% of purchase price). (3) Rent to generate cash flow (target 1% rule: monthly rent = 1% of total investment). (4) Refinance based on new appraised value (cash-out refinance at 75% LTV). (5) Repeat with recycled capital. Example: Buy $100k distressed property, invest $30k rehab, ARV $180k. Refinance at 75% LTV = $135k loan. Recover: $135k - $100k original mortgage = $35k (more than $30k rehab cost). Result: Own cash-flowing property with little to no money left in deal. Key requirement: Property must appraise high enough post-rehab to recover invested capital through refinancing.
What returns can I expect from BRRRR strategy?
BRRRR returns breakdown: Cash-on-cash return: 15-30% annually if executed well (infinite ROI possible if all capital recovered). Equity capture: 20-40% of ARV (buy at 70% of ARV, rehab adds value). Example calculation: Purchase $120k property, $30k rehab, ARV $200k. Total invested: $120k + $30k = $150k. Refinance at 75% ARV: $200k 脳 0.75 = $150k loan. Capital recovered: $150k refinance - $120k original loan = $30k (100% of rehab costs back). Equity position: $200k value - $150k loan = $50k equity (33% ROI on $150k invested). Monthly cash flow: $1,800 rent - $1,100 mortgage - $300 expenses = $400/month ($4,800/year). Cash-on-cash: If $0 left in deal (infinite ROI), if $10k left in = $4,800/$10k = 48% return. Risk factors affecting returns: Rehab cost overruns (budget +20% contingency), appraisal comes in low (get pre-appraisal), interest rate increases (lock rate early), vacancy/repair costs (reserve 10% of rent).
How accurate is the Brrrr Calculator for my local market?
This calculator uses national averages and standard real estate formulas. Local market conditions — including property taxes, insurance rates, HOA fees, rental demand, and appreciation rates — can vary significantly by city and neighborhood. For the most accurate results, input your actual local data rather than relying on defaults. Consult a local real estate agent or appraiser for market-specific figures. Property taxes alone can range from 0.3% (Hawaii) to 2.5% (New Jersey) of assessed value, dramatically affecting calculations.
What assumptions does the Brrrr Calculator make that I should be aware of?
Key assumptions include: stable property appreciation rates (typically 3-4% default), consistent rental income without extended vacancies, standard maintenance costs (1-2% of property value annually), and current 2025 interest rates. The calculator does not account for major unexpected expenses (foundation repairs, roof replacement), changes in local zoning or regulations, economic downturns affecting property values, or tenant-related issues (evictions, damage). Conservative investors should add 10-20% buffer to expense estimates and use pessimistic scenarios for critical investment decisions.
Should I use this calculator before making a real estate investment decision?
This calculator is an excellent starting point for evaluating potential investments, but should be one of several tools in your decision-making process. Also consider: hiring a professional property inspector ($300-$500), reviewing comparable sales (comps) from the past 6 months, analyzing local rental market data (Zillow, Rentometer), consulting with a real estate attorney for legal considerations, and speaking with local property managers about realistic expense ratios. Never make a six-figure investment decision based solely on calculator outputs — they model best-case scenarios that rarely match reality perfectly.