BRRRR Calculator: Estimate Refinance Proceeds and Cash Left In

Why BRRRR Needs a Calculator

BRRRR deals have more moving parts than a normal buy-and-hold rental. The purchase price, rehab budget, after-repair value, refinance loan-to-value, rent, expenses, and new loan payment all interact.

A small miss in rehab cost or ARV can change whether you recover most of your cash or leave far more money in the deal than planned.

The BRRRR Workflow

• Buy below stabilized value or with a clear improvement plan.
• Rehab the property to improve rentability and value.
• Rent the property using realistic market rent assumptions.
• Refinance based on lender value, LTV, and underwriting rules.
• Repeat only if the deal remains stable after the new debt payment.

Core Outputs

Cash left in the deal shows how much original capital remains tied up after the refinance. Capital recovery percentage shows how much cash is returned. Post-refinance cash flow and DSCR show whether the property can support the new loan.

Worked Example

Assume a purchase price of $180,000, rehab of $45,000, and closing or holding costs of $10,000. Total project cost is $235,000. If the after-repair value is $310,000 and the refinance is 75% LTV, gross refinance proceeds are $232,500.

That looks close to a full recovery before payoff costs, lender fees, reserves, and seasoning rules. The next question is whether the new loan payment still leaves positive cash flow.

Risk Checks

• Stress test ARV 5% to 10% lower than expected.
• Add a rehab contingency instead of using the contractor bid exactly.
• Use conservative refinance terms if rates may change before completion.
• Check DSCR after refinance, not just cash recovered.

Frequently Asked Questions