BRRRR Strategy Calculator
Calculate how much cash you can pull out of a rental property using the BRRRR method. Use it when evaluating whether a buy-rehab-rent-refinance deal leaves you with little or no money tied up.
About this calculator
The BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—lets investors recycle capital by refinancing a renovated property and pulling out equity to fund the next deal. The key metric is the cash recovered after refinancing: Cash Out = (ARV × LTV%) − (Purchase Price + Rehab Cost). If this number is positive, you recover more than you invested; if negative, some capital remains in the deal. For example, a property with an ARV of $150,000 refinanced at 75% LTV yields a $112,500 loan. Subtracting a $70,000 purchase price and $20,000 rehab cost leaves $22,500 returned to the investor. Monthly rent then provides ongoing cash flow on top of that recovered capital, making the deal's true return potentially infinite if all cash is pulled out.
How to use
Suppose you buy a distressed property for $70,000, spend $20,000 on rehab, and the after-repair value (ARV) is $150,000. Your lender offers a refinance at 75% LTV. Cash Out = ($150,000 × 0.75) − ($70,000 + $20,000) = $112,500 − $90,000 = $22,500. You recover $22,500 of your original $90,000 investment, leaving only $67,500 in the deal. If monthly rent is $1,200, your ongoing yield on that remaining equity is substantial. Enter these numbers into the calculator to instantly see your cash-out result.
Frequently asked questions
What is a good cash-out result for a BRRRR deal?
Ideally, you want to recover 100% of your invested capital, meaning the cash-out figure equals or exceeds your purchase price plus rehab cost. In practice, recovering 80–90% is considered very strong, as it minimizes the capital tied up indefinitely. The remaining equity still builds wealth through appreciation and loan paydown, so even a partial recovery can be worthwhile if the rental cash flow is solid.
How does refinance LTV affect the BRRRR strategy outcome?
LTV, or loan-to-value ratio, directly controls how much of the ARV the lender will loan back to you. A higher LTV (e.g., 80%) means more cash returned but also a larger loan and higher monthly payment, which can squeeze rental cash flow. Most investors target a 70–75% LTV refinance to balance capital recovery with manageable debt service. Always confirm lender guidelines, since investment property refinances often cap LTV lower than primary residences.
When should I use the BRRRR strategy instead of a traditional rental purchase?
BRRRR works best when you can buy a property significantly below market value—typically distressed, foreclosed, or off-market deals—where the value-add from renovation creates enough equity to refinance out most of your cash. A traditional rental purchase makes more sense when properties trade near market value and little renovation upside exists. BRRRR is also ideal for investors who want to scale a portfolio quickly without tying up large amounts of capital in each individual deal.