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.
Use this brrrr strategy calculator to compute real estate investment results from your inputs.
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