About this calculator
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Popularized by BiggerPockets, it’s a strategy to recycle capital across multiple rental properties by pulling cash out via refinance after each acquisition. The key metric is "capital left in deal" — ideally close to zero, meaning you’ve fully recycled your investment for the next property.
How the math works
Buy at $120k + rehab $40k = $160k all-in. Property appraises at $220k after-repair value (ARV). Refinance at 75% LTV = $165k loan. You pull out $5k cash and own a rental with $1,000+/month cash flow — capital left in: zero. Repeat with the same capital next month.
What makes a BRRRR deal work
- Buy 30%+ below ARV — distressed sellers, off-market deals, auction, foreclosure. MLS rarely produces BRRRR deals at full retail.
- Rehab budget < 20% of ARV — bigger rehabs eat margins fast. Cosmetic + mechanical updates beat full gut jobs for most BRRRR investors.
- Rent supports refinanced PITI + reserves — the new debt service is bigger than original; cash flow shrinks vs paying cash.
- Lender appetite — not all lenders do cash-out refinances on rentals at 75% LTV. Some max at 70% or require 6+ months of seasoning.
Why most BRRRRs leave money in
Three failure modes: ARV comes in lower than expected (most common — appraisers are conservative on rentals), rehab overruns (almost always — budget 20% buffer), or the rate environment shifts and refi at 75% no longer cash flows. Plan for $5–20k capital left in as the normal outcome, not zero.
BRRRR vs traditional buy-and-hold
Buy-and-hold is simpler and lower-risk: write a check, collect rent. BRRRR is higher work, higher risk, higher upside — you can build a portfolio with one chunk of capital instead of needing new capital for each property. Most successful real-estate investors do both.