What is BRRRR?
BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is a strategy for recycling your capital: buy a distressed property, renovate it, rent it out, then refinance based on the new higher value to pull most of your cash back out and do it again.
This calculator shows the two numbers that make or break a BRRRR: how much cash you leave in the deal after the cash-out refinance, and whether it still cash-flows at the new loan amount.
Formula
Cash left in = (purchase + rehab + holding costs) − refinance loan. Refinance loan ≈ 75% × ARV. Post-refi cash flow = rent − expenses − new mortgage payment.
How to read it
- The goal is to leave as little cash in the deal as possible — a great BRRRR returns nearly all your capital (or all of it, for an 'infinite' return).
- Lenders typically refinance up to 75% of the after-repair value (ARV) — the '75% rule' — so your all-in cost needs to fit under that.
- Watch cash flow after refinancing: a bigger loan means a bigger payment, which can turn a good rental negative.
Frequently asked questions
- What is the 75% rule in BRRRR?
- Lenders usually cash-out refinance up to 75% of the after-repair value. If your total all-in cost is at or below 75% of ARV, you can often recover all your invested cash on the refinance.
- What is an infinite return in BRRRR?
- If the refinance returns 100% of the cash you put in (or more), you have no money left in the deal — so any positive cash flow is an infinite cash-on-cash return, since you're dividing by zero cash invested.