BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The goal is to recover your capital at the refinance so you can recycle it into the next property while keeping the asset.
The key output is “cash left in the deal” — the difference between your all-in cost and the cash you pull out at the refinance.
Formula
Cash left in deal = All-in cost − Refinance loan proceeds
All-in cost is purchase price plus closing costs plus rehab (minus any holding income). Refinance proceeds depend on the after-repair value (ARV) and the lender’s loan-to-value limit.
How to calculate it
- Total your purchase, closing and rehab costs.
- Estimate the after-repair value (ARV) and the refinance LTV (often 75%).
- Subtract the new loan amount and any costs from your all-in cost to get cash left in.
Worked example
Assume a $180,000 property renting for $2,200/month with typical expenses and a 7.00% loan. Running those numbers through the RentScope engine gives:
Open the free calculator with your own numbers →
FAQ
What LTV do BRRRR lenders use?
Many use 70–75% of the appraised after-repair value, though some go to 75–80% for strong borrowers.
What if the refinance does not return all my cash?
Then you have cash left in the deal. That is not necessarily bad if the cash-on-cash return on the remaining capital is strong.
How long does a BRRRR take?
Typically 3–9 months including rehab and the seasoning period some lenders require before refinancing.
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