Purchase and rehab
Hard-money or bridge loan (leave blank if you pay cash)
After rehab: value and refinance
Rent and operating costs
Enter the price, ARV and monthly rent, then click Calculate BRRRR.
Result
If the appraisal came in different
| ARV | Value | Refinance loan | Cash out | Cash left in deal | Yearly cash flow |
|---|
If the rehab ran over or took longer
| Scenario | Cash invested | Cash out | Cash left in deal | Yearly cash flow |
|---|
If the refinance rate were different
| Rate | Refinance loan | Cash left in deal | Yearly cash flow | DSCR (NOI) |
|---|
How it is calculated
Hard-money loan = your share of the purchase price plus your share of the rehab. All-in cost = purchase price + rehab + purchase closing costs + points + hard-money interest for the months you hold (interest-only) + monthly holding costs. Cash invested = all-in cost minus the hard-money loan. Refinance loan = ARV x loan-to-value, capped, if you enter a minimum DSCR, at the loan the rent supports (rent over debt service plus tax, insurance and HOA at that minimum). Cash out = refinance loan minus the hard-money payoff minus refinance closing costs. Cash left = cash invested minus cash out, never below zero. Cash flow = net operating income after vacancy, management, maintenance, tax, insurance, HOA and utilities, minus the new loan payment. The highest price that pulls every dollar out is found by re-running the whole deal at different purchase prices.
Not modelled: income tax, depreciation, lender seasoning or delayed-financing rules, appraisal fees, cash-out limits some lenders apply, rent during the rehab, rate changes between purchase and refinance, and lender-specific rules. Unverified: checked by hand calculation and unit tests only. Use the terms on your own loan estimates.
Common questions
What is the BRRRR method?
Buy a distressed property, rehab it, rent it, refinance into a long-term loan based on the new higher value, and repeat with the cash you pulled out. This tool models the money: what you put in, what the refinance pays back and what stays in the deal.
How much cash stays in a BRRRR deal?
All-in cost (price, rehab, closing costs, hard-money points, interest and holding costs during the rehab) minus the hard-money loan is your cash in. The refinance loan, less the hard-money payoff and refinance closing costs, is your cash out. What is left is cash in the deal. If the refinance pays out more than you put in, nothing is left.
What is the 70% rule?
A rule of thumb that caps the purchase price at 70 percent of the after-repair value minus the rehab budget. It ignores your actual financing, points, timing and refinance terms, so this tool also solves for the highest price that pulls every dollar out with your numbers and shows the 70% figure beside it.
Why can the rent limit my refinance?
Lenders that underwrite on the property's rent may cap the loan at the amount the rent can support at their minimum DSCR, even when the loan-to-value limit would allow more. Enter your lender's minimum DSCR and the tool uses whichever limit is lower and tells you which one applied. Enter 0 to ignore it.
What if the appraisal comes in low?
The refinance is sized on the appraised value, not on what you spent. The stress table re-runs the deal at 15 percent below to 5 percent above your ARV so you can see how much cash a low appraisal would leave in the deal.
What if the rehab runs over budget or takes longer?
A second stress table adds rehab overruns and extra months. Both raise your cash in, and the refinance does not grow to cover them.
Does this include taxes or depreciation?
No. Income tax, depreciation, capital gains, entity structure and seasoning rules that some lenders apply before a cash-out refinance are not modelled.
Is my information uploaded anywhere?
No. Everything you type stays in this browser tab. There are no accounts, cookies or analytics vendors.