BRRRR Strategy Calculator
Estimated value after renovations (based on comps)
Typical refinance: 70-75% of ARV
Excluding mortgage payment (calculated separately)
What is the BRRRR Strategy?
BRRRR stands for: Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investing strategy to build a rental portfolio with limited capital.
- Buy: Purchase distressed property below market value
- Rehab: Renovate to increase value (force appreciation)
- Rent: Find tenants to generate cash flow
- Refinance: Get new loan based on higher ARV, pull out invested capital
- Repeat: Use recovered capital to buy another property
- 75% Rule: Purchase + Rehab should be ≤75% of ARV
- 1% Rule: Monthly rent should be ≥1% of purchase price
- Positive Cash Flow: Rent > all expenses (mortgage, taxes, insurance, maintenance)
- Conservative ARV: Use actual comps, don't overestimate
- Buy: $150k (20% down = $30k)
- Rehab: $50k → Total invested: $80k
- ARV: $250k
- Refinance at 75% LTV: $187,500 loan
- Pay off original $120k loan, recover $67,500
- Cash left in property: $12,500 (vs $80k originally)
- Repeat with recovered $67,500!
Risks: Rehab overruns, lower ARV than expected, difficulty refinancing, vacancy, market downturn. Always have reserves and conservative estimates.
About This Calculator
This brrrr strategy calculator helps you move from raw inputs to a decision-ready output in seconds.
Inside real estate investment, this tool gives you a practical way to model scenarios, compare outcomes, and make better next-step decisions without spreadsheet overhead.
If your workflow expands, pair this calculator with Cap Rate Calculator and Cash-on-Cash Return Calculator to cross-check assumptions and build a stronger analysis chain.
Formula
Total invested = Purchase price + Rehab costs | Refinance amount = ARV × Refinance LTV % | Cash recovered = Refinance amount - Total invested | Cash left in deal = Total invested - Cash recovered | Monthly cash flow = Monthly rent - Monthly expenses - New mortgage payment | Cash-on-cash return = (Monthly cash flow × 12) / Cash left in deal × 100
Example Calculation
The worked example below demonstrates how the input fields translate into the final output. Use it as a quick validation pass before entering your own numbers.
- Purchase price: 6
- Rehab costs: 8
- ARV: 12
- Refinance LTV %: 3.5
Explanation of Results
Result Interpretation
The brrrr strategy calculator returned calculated value based on Purchase price 6, Rehab costs 8, ARV 12, and Refinance LTV % 3.5. Use this result as a baseline, then adjust one input at a time to understand how sensitive your outcome is before making decisions.
FAQ
How should I validate the brrrr strategy calculator result?
Run a second scenario with rounded numbers, then compare the direction and magnitude of the change before using the value operationally.
What formula is this based on?
This page uses the following formula logic: Total invested = Purchase price + Rehab costs | Refinance amount = ARV × Refinance LTV % | Cash recovered = Refinance amount - Total invested | Cash left in deal = Total invested - Cash recovered | Monthly cash flow = Monthly rent - Monthly expenses - New mortgage payment | Cash-on-cash return = (Monthly cash flow × 12) / Cash left in deal × 100
Can I bookmark this real estate investment tool?
Yes. Use the canonical URL /finance-economics/real-estate-investment/brrrr-strategy-calculator to return to this calculator in the Finance & Economics library.
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See Also
Other calculators in Real Estate Investment
Cap Rate Calculator
Cash-on-Cash Return Calculator
Mortgage Points Break-Even Calculator
1% Rule Calculator (Rental Property Screening)
Rental Property Cash Flow Calculator
1% Rule / 2% Rule Rental Screening Calculator
Relevant Blog Posts
Articles in Real Estate Investment