Does this property pencil as a BRRRR?
Short answer: BRRRR = Buy, Rehab, Rent, Refinance, Repeat. Enter purchase, rehab, ARV and refi LTV to see recycled capital, trapped capital and post-refi Cash-on-Cash Return.
Formula
Recycled Capital = (ARV × Refi LTV) − (Purchase + Rehab)
Recycled capital
$15,000
Cash you can pull out at refinance vs. cash invested.
Trapped capital
$0
Cash-on-Cash on trapped capital: ∞ (infinite return)
Refi proceeds
$240,000
Post-refi equity
$80,000
How to use this calculator
- Enter purchase price. Distressed or off-market purchase price.
- Enter rehab cost. Realistic rehab budget including 10–15% contingency.
- Enter ARV (after-repair value). Independently appraised value after the rehab, based on comparable sales.
- Enter refinance LTV. 70–75% is typical for cash-out refinance on U.S. investment properties.
- Read recycled capital. The cash pulled out at refinance minus the cash you put in — your recyclable capital for the next deal.
FAQ
What is the BRRRR strategy?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The investor buys a distressed property with cash or short-term financing, renovates it, rents it out, then refinances based on the after-repair value (ARV) to pull out most of their original capital and repeat the cycle.
What percentage of ARV can you typically cash-out refinance?
Most U.S. lenders will refinance 70–75% of the ARV on an investment property. VA and FHA loans don’t apply here — BRRRR uses conventional DSCR or commercial investor loans.
What is a successful BRRRR result?
A textbook "infinite return" BRRRR pulls out 100% of the original cash invested at refinance. In practice, pulling out 80–95% is considered strong and still leaves a cash-flowing rental with minimal trapped capital.