BRRRR Calculator

In today’s competitive real estate market, savvy investors are increasingly turning to the BRRRR method to build their rental property portfolios. This proven strategy—Buy, Rehab, Rent, Refinance, Repeat—offers a systematic approach to growing your real estate investments while maximizing returns through strategic leverage.

Breaking Down the BRRRR Method

The BRRRR method represents a complete cycle of real estate investment, where each step builds upon the previous one:

Buy undervalued properties that need work
Rehab the property to increase its value
Rent to quality tenants for consistent cash flow
Refinance to pull out your initial investment
Repeat the process with your recovered capital

What makes this strategy particularly attractive is its potential for scaling. Unlike traditional buy-and-hold approaches, BRRRR allows investors to recover and recycle their initial investment through refinancing, enabling them to acquire additional properties more quickly.

Why BRRRR Works in Today’s Market

The current real estate landscape presents unique opportunities for BRRRR investors. With many properties in need of renovation and strong rental demand in most markets, investors can find deals that offer significant value-add potential. The key is identifying properties where the numbers make sense.

Finding the Right Property

The best BRRRR candidates are typically:

Properties selling below market value
Homes needing significant but cost-effective repairs
Properties in neighborhoods with strong rental demand
Houses where post-renovation value will support cash-out refinancing

Initial Investment

House Price ($)

Down Payment (%)

Repair Cost ($)

Closing Cost ($)

Interest Rate (%)

Property Details

Repair Time (months)

After Repair Value ($)

House Insurance ($)

Property Tax ($)

Monthly Rent ($)

Refinance Details

Vacancy Rate (%)

Loan to Value Ratio (%)

Refinance Rate (%)

Refinance Term (years)

Refinance Cost ($)

Before Refinance

Loan Amount:

Cash Invest:

Cash Flow Before Renting:

Cash Flow After Renting:

Monthly Interest:

After Cash Out Refinance

Loan After Refinance:

Cash Back From Refinance:

Monthly Mortgage Payment:

Cash Invest After Cashout:

Monthly Expense:

Cash Flow per Month:

Running the Numbers: Using Our BRRRR Calculator

To help investors analyze potential BRRRR deals, we’ve developed a comprehensive calculator that examines both the initial investment phase and refinancing outcomes. Let’s look at a real-world example:

Consider a property listed at $500,000 requiring $80,000 in repairs. Using our calculator, investors can input:

Purchase price and down payment
Estimated repair costs and timeline
Expected rental income
Refinancing terms and costs

The calculator then provides crucial metrics including:

Total required investment
Monthly cash flow scenarios
Refinancing potential
Long-term returns

Financing Your BRRRR Deal

Successful BRRRR investing often involves multiple financing stages:

Initial Purchase and Rehab

Conventional mortgages
Hard money loans
Private financing

Refinancing Options

Cash-out refinancing
Home equity loans
Traditional refinancing

Each option comes with its own requirements, terms, and considerations that our calculator helps you analyze.

Keys to BRRRR Success

Accurate ARV Estimation The After Repair Value determines your refinancing potential. Our calculator helps you test different scenarios to ensure your numbers work.
Conservative Renovation Budgeting Input different repair costs to see how they affect your overall returns and refinancing options.
Realistic Rental Projections The calculator factors in vacancy rates and operating expenses to provide accurate cash flow projections.
Strategic Refinancing Analyze different loan-to-value ratios and interest rates to optimize your refinancing strategy.

Scaling Your Portfolio

The true power of BRRRR becomes apparent when you begin to scale. Each successful project provides capital for the next, creating a snowball effect of portfolio growth. Our calculator helps you project this growth by analyzing:

Capital recovery through refinancing
Cash flow from each property
Total portfolio returns
Scaling potential

The Bottom Line

The BRRRR method remains one of the most effective strategies for building a real estate portfolio, but success depends on accurate analysis and careful planning. Our BRRRR calculator provides the tools needed to evaluate deals effectively and make informed investment decisions.

Whether you’re considering your first BRRRR project or expanding an existing portfolio, start by running your numbers through our calculator above. Remember, successful real estate investing isn’t about gut feelings—it’s about analyzing the data and making informed decisions based on solid calculations.

Note: Real estate investments carry inherent risks. This calculator provides estimates based on user inputs. Always conduct thorough due diligence and consult with real estate professionals before making investment decisions.