Master the BRRRR Strategy

Buy, Rehab, Rent, Refinance, Repeat - the ultimate wealth-building strategy. Calculate returns, analyze deals, and scale your portfolio with our comprehensive BRRRR calculator.

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Example BRRRR Deal

Purchase Price:
$120,000
Rehab Cost:
$35,000
ARV:
$200,000
Monthly Rent:
$1,600
Cash Left In Deal: $5,000
Cash-on-Cash ROI: 216%
Total ROI: 38.9%

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Complete BRRRR Strategy Guide

Master the art of building wealth through the BRRRR method

What is the BRRRR Strategy?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat - a powerful real estate investment strategy that allows you to recycle your initial capital and scale your portfolio rapidly.

1

BUY

Purchase below-market properties with potential

2

REHAB

Improve the property to increase value and rent

3

RENT

Find quality tenants for steady cash flow

4

REFINANCE

Pull out equity through cash-out refinance

5

REPEAT

Use the capital for the next deal

Key BRRRR Metrics to Track

Cash Left in Deal

The amount of your own money remaining after the refinance. Lower is better for scaling.

Total Investment - Refinance Amount
Goal: $0 (full capital recovery)

70% Rule Compliance

Purchase + rehab should not exceed 70% of ARV (After Repair Value) for profitable deals.

(Purchase + Rehab) / ARV ≤ 70%
Critical: Ensures refinance profitability

Cash-on-Cash Return

Annual cash flow divided by cash left in the deal after refinance.

Annual Cash Flow / Cash Left In Deal
Target: Infinite return (if $0 left in deal)

Total ROI

Overall return including appreciation, cash flow, and loan paydown over holding period.

Total Benefits / Total Investment
Target: 15-25% annually

BRRRR Success Criteria

Property Selection

Look for properties that are:

  • • 20-30% below market value
  • • In good neighborhoods with rental demand
  • • Structurally sound (avoid major structural issues)
  • • Meet the 70% rule after rehab costs
!

Accurate ARV Estimation

Your After Repair Value must be based on:

  • • Recent comparable sales (within 6 months)
  • • Similar size, condition, and location
  • • Conservative estimates (better to underestimate)
  • • Professional appraisal if unsure
$

Refinance Readiness

Ensure you can refinance by having:

  • • Strong credit score (740+ preferred)
  • • Adequate income and debt-to-income ratio
  • • 6+ months seasoning (property ownership)
  • • Good relationships with portfolio lenders

Our BRRRR Calculator Features

Complete BRRRR Analysis

Track every step from purchase to refinance with detailed metrics

70% Rule Verification

Automatically checks if your deal meets the critical 70% rule

Sensitivity Analysis

Test different ARV, rehab cost, and refinance scenarios

Common BRRRR Mistakes to Avoid

Overestimating ARV

Using optimistic property values leads to refinance shortfalls. Always be conservative with ARV estimates.

Underestimating rehab costs

Always add 20-30% buffer to rehab estimates. Unexpected issues are common in older properties.

Ignoring holding costs

Factor in mortgage payments, taxes, insurance, and utilities during the rehab and vacancy periods.

Not securing refinancing upfront

Build relationships with portfolio lenders before you need them. Know their requirements and get pre-qualified.

Ready to Start Your BRRRR Journey?

Use our comprehensive calculator to analyze your first BRRRR deal

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