BRRRR Calculator - Real Estate Investment Strategy Analysis

Buy

Rehab

Rent

Refinance

Repeat

🏠 Buy Phase - Property Acquisition

Purchase Price ($)

Target 70% of ARV minus repairs

Down Payment (%)

Hard money typically 20-30%

Closing Costs ($)

Title, attorney, inspection fees

Holding Period (Months)

Time to complete BRRRR cycle

🔨 Rehab Phase - Property Renovation

Total Rehab Costs ($)

All renovation expenses

After Repair Value - ARV ($)

Estimated value after repairs

💰 Rent Phase - Income Generation

Monthly Rent ($)

Target 1% of ARV

Monthly Operating Expenses ($)

Tax, insurance, maintenance, etc.

🏦 Refinance Phase - Capital Recovery

Refinance LTV (%)

Typical max is 75-80%

Refinance Interest Rate (%)

Long-term mortgage rate

Refinance Closing Costs ($)

Hard Money Rate (%)

Initial loan interest rate

Cash Left in Deal
$0

Monthly Cash Flow

Cash on Cash Return

Total ROI

📅 BRRRR Timeline & Cash Flow

Buy Property

Cash Out: $0
Purchase + Down Payment + Closing

Rehab Property

Cash Out: $0
Renovation costs + Holding costs

Rent Property

Monthly Income: $0
Begin generating cash flow

Refinance

Cash Back: $0
Recover initial investment

💵 Cash Investment Breakdown

Investment Component	Amount
Down Payment	$0
Purchase Closing Costs	$0
Rehab Costs	$0
Holding Costs	$0
Refinance Closing Costs	$0
Total Cash Invested	$0

📊 Return Analysis

Metric	Value
Cash Recovered from Refinance	$0
Cash Left in Deal	$0
Annual Cash Flow	$0
Equity Captured	$0
70% Rule Check	-

Understanding the BRRRR Strategy

What is BRRRR?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investment strategy that allows investors to recycle their capital by pulling most or all of their initial investment back out through refinancing, enabling them to repeat the process with minimal additional capital.

💡 The 70% Rule: Purchase price + Rehab costs should not exceed 70% of the After Repair Value (ARV). This ensures enough equity for refinancing and profit margin.

The BRRRR Process Explained

1. Buy - Find & Purchase Distressed Property

Look for properties below market value
Use hard money or private lenders for speed
Target properties needing cosmetic repairs
Ensure the 70% rule is met

2. Rehab - Renovate to Add Value

Focus on high-ROI improvements (kitchen, bathrooms)
Create accurate rehab budgets with contingencies
Use reliable contractors or DIY if skilled
Complete renovations quickly to minimize holding costs

3. Rent - Generate Income

Price competitively for quick tenant placement
Screen tenants thoroughly
Aim for rent at 1% of property value
Consider property management if scaling

4. Refinance - Recover Capital

Wait for seasoning period (usually 6 months)
Get property appraised at new ARV
Refinance at 75-80% of appraised value
Pay off hard money loan and recover cash

5. Repeat - Scale Your Portfolio

Use recovered capital for next deal
Build relationships with lenders and contractors
Systematize your process
Consider forming an LLC for protection

⚠️ BRRRR Risks to Consider:

Rehab costs exceeding budget
Property not appraising at expected ARV
Extended vacancy periods
Interest rate changes affecting refinance
Market downturns impacting values

Keys to BRRRR Success

Accurate ARV Analysis: Use comparable sales and conservative estimates
Detailed Rehab Budgets: Include 10-20% contingency
Strong Financing Relationships: Build network of lenders
Market Knowledge: Know your target neighborhoods intimately
Exit Strategies: Have backup plans if refinancing fails