BRRRR Calculator

How the BRRRR Method Works

BRRRR is a five-step real estate investing strategy that uses equity from one property to fund the next:

1. Buy a distressed property below market value
2. Rehab it to force appreciation and increase the ARV
3. Rent it out to generate cash flow and qualify for refinancing
4. Refinance at 70-75% LTV based on the new ARV — pulling out most or all of your invested capital
5. Repeat with the extracted cash on the next property

Frequently Asked Questions

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat. It's a leveraged real estate investing strategy that recycles capital across multiple properties.

What is a good BRRRR deal?

A strong BRRRR deal leaves $0 or less cash in the deal after refinancing, generates positive monthly cash flow, has ARV at least 25-30% above total acquisition + rehab, and passes the 1% rule for rent.

What LTV can I get on a BRRRR refinance?

Most lenders offer 70-75% LTV on investment property cash-out refinances. Portfolio lenders may go to 80%. The loan is based on ARV — which is why rehab quality matters.

What is equity capture in BRRRR?

The instant equity created by buying below market and/or forcing appreciation through rehab. Buying + rehabbing for $220K with an ARV of $300K captures $80K in equity.

What if my BRRRR cash-out doesn't cover my investment?

You have cash left in the deal. This isn't automatically bad — as long as cash-on-cash return is strong and cash flow is positive. The goal is to minimize trapped capital, not necessarily zero on every deal.