BRRRR is an investing strategy that means buy, rehab, rent, refinance, and repeat, with each stage requiring separate assumptions.
Frequently asked questions
What is the BRRRR method in real estate?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investing strategy that lets you recycle the same capital across multiple rental properties. You buy a distressed property, force appreciation through renovation, place a tenant, then refinance based on the new (higher) After Repair Value to pull most or all of your cash back out — leaving you with a cash-flowing rental and your original capital free for the next deal.
How does a BRRRR calculator work?
A BRRRR calculator runs two linked analyses: the deal economics (purchase, rehab, ARV, refinance loan amount) and the ongoing rental performance (rent, expenses, mortgage payment, vacancy). The two outputs that matter most are cash left in deal (how much capital remains tied up after refinance) and cash-on-cash return (annual cash flow divided by remaining capital). A great BRRRR pulls all your cash back out and still cash-flows.
What is a good cash-on-cash return for BRRRR?
Most BRRRR investors target 10–15% cash-on-cash return at minimum, with great deals delivering 20%+ — and the rare 'infinite return' deal where you pull all your capital back out. Cash-on-cash below 8% usually means you're paying too much, the rent is too soft, or expenses are eating the spread. Always stress-test with realistic vacancy (8–10%) and management (8–10% of rent) before committing.
How do you calculate refinance proceeds?
Refinance proceeds equal your After Repair Value (ARV) multiplied by the lender's loan-to-value ratio (LTV) — typically 70–75% on investment properties. Example: a $200,000 ARV at 75% LTV gives you a $150,000 refinance loan. If your total all-in cost (purchase + rehab + closing) was $140,000, you walk away with $10,000 cash AND own a rental property with no money left in the deal.
What are the biggest risks in a BRRRR deal?
Three risks kill BRRRR deals: (1) ARV comes in below your estimate at appraisal, so the refinance loan covers less of your invested capital — leaving cash trapped. (2) Rent comes in below market, crushing cash flow once the new mortgage payment kicks in. (3) Rehab runs over budget and timeline, increasing holding costs and tying up capital longer than projected. Always underwrite ARV with conservative comps, rent with the lowest of three rentometer pulls, and add a 15% rehab contingency.