BRRRR Method Calculator
Free BRRRR calculator. Model the cash-out refinance at ARV to see your cash left in the deal, refinanced mortgage payment, and post-refinance cash flow.
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Additional Details
Additional Details
Cash Left in Deal
Estimated • Based on your inputs
Monthly Cash Flow (After Refi)
$22.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
BRRRR = Buy, Rehab, Rent, Refinance, Repeat. Total cash invested is the purchase price, rehab cost, and purchase closing costs (typically funded with cash or a hard money loan). At refinance, the new lender bases the loan on the After Repair Value (ARV), not the purchase price: Refinance Loan = ARV × Refinance LTV%. "Cash left in the deal" is whatever of your original cash investment the refinance loan does not return to you — the strategy's goal is to get this as close to $0 as possible so your capital can be redeployed into the next property while the rental still cash-flows.
How to Use This Real Estate Calculator
- 1
Enter the property price
Input the listing price or your offer amount. The calculator pre-fills your state's median home price as context. Consider whether the market favors buyers or sellers when evaluating price.
- 2
Set financing terms
Enter your down payment percentage, expected interest rate, and loan term. Real estate commissions (typically 5-6%, split between agents) are usually paid by the seller.
- 3
Include transaction costs
Factor in closing costs (2-5% of purchase price), home inspection ($300-$500), appraisal ($300-$600), and state-specific transfer taxes. These add significantly to the total investment.
- 4
Analyze the investment
Review total cost to acquire, estimated monthly carrying costs, and potential appreciation. Compare gross rent multiplier if evaluating as an investment property.
Example Calculation
Let's analyze a real estate purchase in a typical housing market.
Purchasing a 3-bedroom home for $375,000 with 20% down ($75,000). Closing costs at 3%: $11,250. Home inspection: $450. Total cash needed: approximately $86,700. Monthly mortgage (P&I at 6.75%, 30-year): $1,946. Add property taxes (~$310/month), insurance (~$150/month), and maintenance reserve (~$310/month). Total monthly cost: approximately $2,716.
Result: Total cash to close: $86,700. Monthly carrying cost: $2,716. If the home appreciates 3% annually, it gains $11,250 in year 1 — a 13% return on the $86,700 invested (leveraged return). Over 30 years with 3% appreciation, the home is worth $910K and the mortgage is paid off — $835K in equity from $86,700 invested. That's the power of leveraged real estate.
What Affects Your Results
Interest Rates
Every 1% rate change shifts purchasing power by approximately 10%. At 5% you can afford a $400K home; at 7% the same payment only covers $330K. Rate environment dramatically affects affordability.
Local Market Conditions
Your state's housing supply, population growth, and job market drive appreciation rates. Markets with job growth and limited supply appreciate fastest; declining population areas may stagnate.
Property Taxes
Annual property tax (0.3% to 2.3% of assessed value) is a carrying cost that never goes away — even after the mortgage is paid. Factor this permanent expense into long-term analysis.
Closing Costs
Title insurance, origination fees, attorney fees, recording fees, and transfer taxes typically total 2-5% of purchase price. These are sunk costs that take 2-3 years of appreciation to recover.
Tips & Best Practices
- Get a thorough home inspection — it's the best $400-$500 you'll spend. Inspectors find issues worth $5,000-$50,000 that affect your purchase price or walk-away decision.
- Understand your state's transfer taxes and recording fees before making an offer. These can add 0.1% to 2.6% to your transaction costs depending on location.
- In a buyer's market, negotiate closing cost credits from the seller (up to 3-6% of purchase price depending on loan type). This reduces cash needed at closing significantly.
- Don't waive contingencies to win bidding wars unless you truly understand the risk. Waiving inspection contingency on a $400K home to save a few thousand in negotiations can lead to $30K+ in undiscovered repairs.
- Look at price-to-rent ratio when evaluating: Price / Annual Rent. Under 15 = better to buy. Over 20 = renting may be smarter. Between 15-20 = depends on your time horizon and local market trajectory.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investing strategy where you buy a distressed property below market value, renovate it to increase its value, rent it out, then refinance based on the new (After Repair) Value to pull your original cash back out — ideally to fund the next deal.
What is a good LTV for a BRRRR refinance?
Most conventional and DSCR (debt-service-coverage-ratio) rental refinance loans cap out at 70-80% loan-to-value (LTV). 75% is a common assumption. A lower LTV means a smaller refinance loan and more of your original cash stays in the deal; a higher LTV recycles more cash but leaves a larger mortgage payment.
What does "$0 cash left in the deal" mean?
It means the refinance loan was large enough to return 100% of the cash you originally put into the purchase and rehab. At that point, your cash-on-cash return is technically infinite since you have no cash basis left in the property — this is the ideal (though not always achievable) BRRRR outcome.
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