CompDesk › BRRRR Calculator
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BRRRR Calculator
Buy, Rehab, Rent, Refinance, Repeat. Enter the purchase, rehab, refinance and rent numbers to see how much of your cash comes back out at the refinance, how much stays in the deal, and what the rental earns each month afterward.
Enter the address and CompDesk pulls the sold comps, ARV and a value estimate, then runs BRRRR next to flip and rental numbers.
Your first lookup is free, with no account needed. A free account gets you 3 more.Calculate a BRRRR deal
1 · Buy and rehab
Holding costs: short-term loan interest, taxes, insurance and utilities until the refinance closes. Need the rehab number? Try the Rehab Cost Estimator.
2 · Refinance
Assumes a 30-year fixed loan. Estimate the appraised value from renovated comps with the ARV Calculator.
3 · Rent
Estimates for investment analysis. Lenders set their own appraisal, loan-to-value, seasoning and debt-coverage rules; confirm the terms before you buy.
How the BRRRR method works
- Buy a house below what it will be worth once it's fixed, usually with cash or a short-term rehab loan.
- Rehab it to rental-ready condition, which forces the value up.
- Rent it to a tenant. Lenders want to see a lease and rent that covers the new loan.
- Refinance into a long-term loan based on the new appraised value. The loan pays off the short-term financing and returns some or all of your cash.
- Repeat with the cash that came back out.
The goal is to end up owning a rental with little or none of your own money left in it. Two numbers decide whether that happens: how much cash the refinance returns, and whether the rent still covers the bigger loan.
Monthly cash flow = rent − mortgage payment − taxes and insurance − HOA − management and reserves
Cash-on-cash return = yearly cash flow ÷ cash left in the deal
Worked example
A house bought for $165,000 with a $45,000 rehab, held 6 months at $1,200 a month, appraises at $285,000 and rents for $2,400 a month. The refinance is 75% of the appraised value at 7.25% over 30 years. These are the numbers already in the calculator above.
| Cash in | |
|---|---|
| Purchase price and 2% closing costs | $168,300 |
| Rehab | $45,000 |
| Holding costs (6 × $1,200) | $7,200 |
| All-in cost | $220,500 |
| Refinance | |
| New loan (75% of $285,000) | $213,750 |
| Refinance closing costs (2%) | −$4,275 |
| Cash left in the deal | $11,025 |
| Each month | |
| Rent | $2,400 |
| Mortgage payment (principal and interest) | −$1,458 |
| Taxes and insurance | −$375 |
| Management, vacancy, repairs and capex (20% of rent) | −$480 |
| Cash flow | $87 |
Of the $220,500 that went in, the refinance returns all but about $11,025. The rental then makes about $87 a month, a 9.5% cash-on-cash return on the cash still in the deal, while the tenant pays down the loan and you keep $71,250 of equity. The cash flow is thin, which is common for BRRRR deals at a 7.25% rate. The equity and the cash you get back are the main payoff, so check that a vacancy or a big repair wouldn't sink the deal.
What makes a BRRRR deal work
- A big enough value jump. Lenders typically refinance 70–80% of the appraised value. To get most of your cash back, the all-in cost generally has to land at or under that percentage of the after-repair value.
- Rent that covers the new loan. Many rental lenders use a debt service coverage ratio (DSCR): rent divided by the mortgage payment, taxes, insurance and HOA. A DSCR of 1.20–1.25 or higher is a common target; this calculator shows yours.
- Realistic reserves. Budget for vacancy, repairs and big replacements like roofs and HVAC, not just the mortgage. Leaving these out is how a rental that looks positive on paper loses money.
- A lender who will refinance on the new value. Some lenders require you to own the property for a set period, often around six months, before they'll lend on the appraised value instead of what you paid. Line up the refinance lender before you buy.
A quick screening rule some investors use is the 1% rule: monthly rent of at least 1% of the all-in cost. It's only a filter. Taxes, insurance and rates vary too much for it to replace the full numbers.
Common BRRRR mistakes
- Assuming the appraisal will hit your number. Run the deal at a lower value too. If a short appraisal leaves too much cash stuck in the deal, it's a risky buy.
- Forgetting refinance closing costs. Origination, appraisal, title and prepaid items come out of the cash you get back.
- Counting rent without reserves. A property manager, a month of vacancy a year and a repair fund add up to a meaningful share of rent.
- Underestimating time. Every extra month before the refinance adds holding costs and delays the return of your cash.
- Over-renovating for a rental. Durable, mid-grade finishes usually rent and appraise just as well as high-end ones.
Analyze BRRRR deals with real comps
CompDesk looks up the property and nearby sales, works out the after-repair value from adjusted comps, builds the rehab budget and runs BRRRR, flip and rental income numbers side by side, then puts it all in a report for your lender.
BRRRR Calculator questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. You buy a property below its potential value, renovate it, rent it out, then refinance into a long-term loan based on the higher appraised value to pull your cash back out and repeat with the next property.
How much cash can I pull out in a BRRRR refinance?
Lenders typically lend 70–80% of the appraised value on a cash-out refinance of a rental. Your cash back is that loan minus the closing costs and whatever you still owe on the purchase or rehab loan. Requirements vary by lender, so confirm them before you buy.
What is a good cash-on-cash return for a BRRRR rental?
Many investors look for 8–12% or more on the cash left in the deal. If the refinance returns all of your cash, the cash-on-cash return is effectively unlimited, though the property still needs to cash flow to be a safe hold.
What is DSCR?
DSCR, or debt service coverage ratio, is monthly rent divided by the monthly mortgage payment, taxes, insurance and HOA. Rental lenders often want 1.20–1.25 or higher, and some DSCR loan programs qualify you based on the property's rent instead of your personal income.
Is BRRRR better than flipping?
They solve different goals. A flip turns the value you add into a one-time profit that's taxed as income. BRRRR keeps the property, so you build equity and monthly income over time but take on landlord risk and a long-term loan. Many investors do both.