BRRRR Calculator: How to Evaluate Your Next Deal in 10 Minutes

The BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — is the closest thing to a cheat code in real estate investing. Done right, you recover most of your capital at refinance and redeploy it into the next deal.

Done wrong, you trap $50,000 in a property that barely cash flows.

What Makes BRRRR Different

With traditional buy-and-hold, your capital stays in the deal forever. With BRRRR, you:

1. Buy below market value (usually distressed)
2. Rehab to force appreciation
3. Rent at market rate
4. Refinance based on the new, higher value
5. Repeat using the cash pulled out

The 5 Numbers That Make or Break a BRRRR Deal

1. All-in cost (purchase + closing + rehab + holding costs)
2. After Repair Value (ARV)
3. Refinance proceeds (typically 70-80% of ARV)
4. Cash left in the deal (all-in minus refinance proceeds)
5. Cash flow after refinance

Step-by-Step: A Real BRRRR Deal

The Property

• Memphis, TN — Asking $95,000
• Needs full cosmetic rehab
• Comparable sales: $165,000–$175,000
• Market rent: $1,350/month

Step 1: Acquisition

• Purchase: $90,000
• Hard money: 80% LTV, 12% interest, 2 points
• Cash at closing: $22,140

Step 2: Rehab Budget

Kitchen, baths, flooring, paint, electrical, landscaping + 10% contingency = $35,000

Step 3: Holding Costs (3 months)

Hard money interest + insurance + taxes + utilities = $3,285

Step 4: All-In Cost

$90,000 + $2,700 + $1,440 + $35,000 + $3,285 = $132,425

Step 5: ARV

Conservative estimate based on 3 comps: $167,000

Step 6: Refinance

75% LTV = $125,250 loan. After paying off hard money ($72,000) and closing costs ($3,000): $50,250 cash back

Step 7: Cash Left in Deal

$60,425 invested – $50,250 recovered = $10,175 (83% capital recovery)

Step 8: Post-Refinance Cash Flow

After all expenses and new mortgage: –$101/month

Verdict

This deal doesn't work as written. But drop the purchase to $80,000 and the math flips — you pull out ALL your capital with positive cash flow.

Common BRRRR Mistakes

1. Ignoring holding costs — can add $5,000–$8,000
2. Overestimating ARV — use sold comps, not listing prices
3. Underestimating rehab — always add 10-15% contingency
4. Forgetting refinance closing costs — $2,500–$4,000
5. Not stress-testing — what if ARV is 5% low?

Key Takeaways

1. BRRRR success depends entirely on running ALL the numbers.
2. Holding costs during rehab are real. Budget for them.
3. Be conservative with ARV.
4. Negative cash flow after refinance kills the "Repeat."
5. A BRRRR calculator turns a 3-hour analysis into 10 minutes.