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BRRRR Calculator
The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) lets you recycle your capital to scale a real estate portfolio. Calculate your cash left in the deal and cash-on-cash return.
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How to use this calculator
- Enter the purchase price and expected renovation costs.
- Add the ARV (After Repair Value) and your expected refinance LTV.
- Enter the monthly rent and operating expenses.
- Add the terms of your initial hard money or short-term loan.
What your results mean
A 'perfect' BRRRR leaves $0 in the deal after the refinance, meaning your cash-on-cash return is technically infinite. Even if you leave some cash in the deal, the strategy allows you to acquire properties for pennies on the dollar compared to a standard 20% down payment.
5 tips for executing a successful BRRRR
- You make your money when you buy. You MUST buy significantly below market value.
- Nail your renovation budget. Cost overruns are the #1 reason BRRRRs fail.
- Talk to a refinance lender BEFORE you buy to ensure you qualify for the takeout loan.
- Know the 'seasoning period'. Many lenders require you to hold the property for 6 months before refinancing based on ARV.
- Don't over-improve. Renovate to the standard of the neighborhood, no higher.