BRRRR Strategy Calculator
Buy, Rehab, Rent, Refinance, Repeat. Analyze your capital recycling.
How This Tool Works
The BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat) is the gold standard for scaling a real estate portfolio without running out of cash. This calculator helps you simulate the entire process to see if you can pull all your initial capital back out ("The Perfect BRRRR") to use for your next deal.
The 5 Steps of BRRRR
- Buy: Purchase a distressed property below market value.
- Rehab: Renovate it to force appreciation (increase the ARV).
- Rent: Place a tenant to generate income and qualify for a new loan.
- Refinance: Get a long-term bank loan based on the new, higher value to pay off your initial investment.
- Repeat: Use the returned cash to buy the next property.
Example Scenario
You buy a fixer-upper for $100,000 and spend $25,000 on repairs. Your total "All-In" cost is $125,000.
- The new value (ARV) is appraised at $180,000.
- The bank gives you a loan for 75% of the new value: $135,000.
- You pay off your original $125k investment.
- Result: You get all your money back plus $10,000 extra cash, and you still own the rental property!
Frequently Asked Questions
What is the "seasoning period" in BRRRR?
The "seasoning period" is the time a bank requires you to own a property before they will let you refinance it based on its new appraised value. This is typically 6 months, though some lenders allow immediate refinancing.
What is a good LTV for refinancing?
Most investment property lenders will refinance at 70% to 75% Loan-to-Value (LTV), sometimes 80%. This means the new loan will be 70-80% of the new appraised value (ARV).
Can I do BRRRR with no money?
You typically need capital for the initial purchase and renovation (the "Buy" and "Rehab" phases). Investors often use Hard Money Loans or Private Money for this step, then pay those high-interest loans off with the long-term refinance loan.