BRRRR
Calculator
Analyze your BRRRR deal in seconds. Calculate cash left in deal, cash-on-cash return, DSCR, and monthly cash flow — all automatically.
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$9,700
Good deal — strong returns on remaining equity.
$158
19.6%
$50,000
1.11
Capital Flow
Refinance Summary
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Complete Guide to the BRRRR Strategy
What is BRRRR?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investment strategy that allows investors to build a rental portfolio by recycling their initial capital. Instead of leaving money locked in each property, investors force appreciation through renovation, then refinance to pull out most or all of their original investment.
How Does the BRRRR Strategy Work?
The strategy works in five phases: Buy a distressed property below market value, Rehab it to increase its value, Rent it to a qualified tenant, Refinance based on the new appraised value (ARV) to recover your capital, then Repeat the process with the recovered funds.
Key Metrics: DSCR and Cash-on-Cash Return
The Debt Service Coverage Ratio (DSCR) measures whether rental income covers debt payments. A DSCR above 1.0 means the property cash flows positively. Cash-on-Cash Return measures annual cash flow relative to the capital left in the deal — the higher, the better.
Common BRRRR Mistakes to Avoid
The most common mistakes include: overestimating ARV, underestimating rehab costs, not accounting for holding costs during renovation, overestimating rent, and not verifying that the refinance will cover your total project cost. Our calculator helps you avoid these by modeling the complete deal.
When Does BRRRR Not Work?
BRRRR may not work when: the purchase price is too high relative to ARV, renovation costs exceed the forced appreciation, rental income doesn't support a DSCR above 1.0, or refinance LTV limits prevent full capital recovery. Always run the numbers before committing.
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