Enter Your BRRRR Assumptions
Example Data Table
These sample values match the default inputs already loaded in the calculator.
| Example Input | Value |
|---|---|
| Purchase Price | $180,000.00 |
| Rehab Cost | $35,000.00 |
| Purchase Closing Costs | $6,500.00 |
| Holding Costs | $4,000.00 |
| Purchase LTV | 80.00% |
| Bridge Rate | 9.25% |
| Loan Points | 2.00% |
| Rehab Months | 6.00 |
| After Repair Value | $285,000.00 |
| Monthly Rent | $2,650.00 |
| Refinance LTV | 75.00% |
| Refinance Rate | 7.40% |
| Example Output | Value |
|---|---|
| All-In Cost | $235,040.00 |
| Cash Invested Before Refinance | $91,040.00 |
| Created Equity | $49,960.00 |
| Net Refinance Proceeds | $65,550.00 |
| Cash Left In Deal | $25,490.00 |
| Monthly NOI | $1,537.80 |
| Monthly Refinance Payment | $1,479.96 |
| Monthly Cash Flow | $57.84 |
| DSCR | 1.04 |
| Cap Rate on ARV | 6.47% |
| Cash-on-Cash Return | 2.72% |
| Capital Returned | 72.00% |
Formula Used
Purchase loan = Purchase Price × Purchase LTV
Down payment = Purchase Price − Purchase Loan
Loan points cost = Purchase Loan × Loan Points
Interest carry = Purchase Loan × Annual Rate ÷ 12 × Rehab Months
All-in cost = Purchase Price + Rehab + Purchase Closing + Holding + Loan Points + Interest Carry
Cash invested before refinance = Down Payment + Rehab + Purchase Closing + Holding + Loan Points + Interest Carry
Created equity = After Repair Value − All-In Cost
New refinance loan = After Repair Value × Refinance LTV
Net refinance proceeds = New Refinance Loan − Old Loan Payoff − Refinance Closing Costs
Effective rent = Monthly Rent × (1 − Vacancy Rate)
Operating expenses = Management + Maintenance + CapEx + Taxes + Insurance + HOA + Utilities + Other Monthly Costs
Monthly NOI = Effective Rent − Operating Expenses
Refinance payment uses the standard amortizing mortgage formula.
Monthly cash flow = Monthly NOI − Monthly Refinance Payment
Cash-on-cash return = Annual Cash Flow ÷ Cash Left In Deal × 100
DSCR = Monthly NOI ÷ Monthly Debt Service
How to Use This Calculator
- Enter purchase, rehab, and holding assumptions for the property you want to acquire.
- Set financing terms for the initial loan, including LTV, rate, points, and rehab timeline.
- Add the projected after repair value and expected refinance terms.
- Enter monthly rent and expense assumptions, including reserves for vacancy, maintenance, and capital expenditures.
- Press Calculate BRRRR Strategy to view results above the form.
- Use the CSV and PDF buttons to save the full result summary for sharing or later review.
Frequently Asked Questions
1. What does BRRRR stand for?
BRRRR means buy, rehab, rent, refinance, and repeat. The method aims to recycle capital by improving a property, stabilizing rent, and refinancing after value increases.
2. What is cash left in the deal?
Cash left in the deal is your remaining money after refinance proceeds are used to recover initial capital. Lower remaining cash can improve capital efficiency if cash flow stays healthy.
3. Why can cash-on-cash return look low or negative?
Cash-on-cash depends on the refinance payment, rent level, and expenses. High debt service, weak rent, or heavy reserves can reduce annual cash flow even when equity creation looks strong.
4. Should maintenance and CapEx be separate?
Yes. Maintenance covers routine repairs, while CapEx reserves prepare for major replacements like roofs, HVAC systems, and flooring. Separating them gives a more realistic long-term underwriting picture.
5. What does created equity mean here?
Created equity is the difference between after repair value and all-in cost. It shows how much value may be built through pricing, renovation efficiency, and favorable market positioning.
6. Why is DSCR important?
DSCR measures how comfortably the property’s net operating income covers monthly debt service. Many lenders prefer a ratio above 1.20, though requirements vary by lender and loan program.
7. Does this calculator replace full underwriting?
No. It is a strong screening and planning tool, but full underwriting should also review taxes, lease quality, local regulations, rehab unknowns, lender guidelines, and market rent evidence.
8. What inputs matter most for refinance success?
The biggest drivers are after repair value, refinance LTV, rent stability, total project cost, and interest rates. Small changes in these assumptions can significantly alter cash recovery and cash flow.