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BRRRR Strategy Calculator

How much cash is left in your BRRRR deal after refinancing?

How it is calculated

The tool adds up the cash you put in and subtracts the cash pulled out at the refinance. total invested = purchase price + rehab + closing costs, refinance loan = ARV × LTV % / 100 (ARV is the after-repair value, LTV the loan-to-value the lender allows), and cash left in the deal = total invested − refinance loan. A negative figure means the loan returned more than you put in. Cash-on-cash return is monthly cash flow × 12 / cash left × 100, where monthly cash flow is what the rental earns after the new mortgage payment and other costs. When cash left is zero or negative, the return is shown as ∞ because no cash remains tied up. Loan fees and holding costs are not separate inputs, so add them to closing costs if you want them counted.

Worked example

Purchase 120,000, rehab 40,000, closing costs 6,000, ARV 210,000, LTV 75 %, rent cash flow 350 a month. Step 1: total invested = 120,000 + 40,000 + 6,000 = $166,000.00. Step 2: refinance loan = 210,000 × 0.75 = $157,500.00. Step 3: cash left = 166,000 − 157,500 = $8,500.00. Step 4: annual cash flow = 350 × 12 = 4,200, so cash-on-cash = 4,200 / 8,500 = 49.41%.

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Common mistakes

  • Using the purchase price or the estimated rent-ready value as ARV. The loan is based on the appraised value after repairs, so an optimistic ARV makes the cash left look far smaller than a real appraisal would allow.
  • Entering LTV as a fraction (0.75). The field is a percent, and 0.75 means 0.75 % of ARV.
  • Leaving out holding costs, interest on the purchase loan and refinance fees. Only purchase, rehab and closing costs are counted, so cash left is understated unless you add those items to closing costs.
  • Entering gross rent as monthly cash flow. It should be what remains after the new mortgage payment, taxes, insurance and upkeep.
  • Reading ∞ as a guaranteed win. It only means you got all your cash back out; the deal can still have negative cash flow.

About this calculator

BRRRR — Buy, Rehab, Rent, Refinance, Repeat — is a real estate investing loop where an investor buys a distressed property below market value, renovates it to raise its after-repair value (ARV), rents it out, then refinances based on the new ARV to pull cash back out and use it for the next deal. The cash left trapped in the deal is purchase price + rehab costs + closing costs − cash-out refinance loan amount (the refinance loan is typically 70–75% of ARV).

Investors run this math before committing to a deal because the whole strategy depends on getting most or all of the initial capital back out through the refinance — if too much cash stays trapped, the investor cannot repeat the process on the next property, and the cash-on-cash return on the remaining money left in the deal determines whether it was worth the risk.

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