🏚️

BRRRR Calculator

Free BRRRR calculator and real estate BRRRR deal analyzer. Complete DSCR calculator with cash flow calculator for real estate investments. Analyze rental property deals, refinance scenarios, and BRRRR investment returns with 5-year projections.

Popular

BRRRR Calculator: Buy, Rehab, Rent, Refinance, Repeat Real Estate Investment Strategy

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is a real estate investment method that allows investors to recycle their capital by purchasing distressed properties, renovating them, renting them out, refinancing to pull out equity, and using that capital to repeat the process. This strategy enables investors to scale their real estate portfolio without needing new capital for each property. The key is finding properties below market value, adding value through renovations, achieving positive cash flow through rental income, and refinancing to recover most or all of your initial investment, allowing you to use the same capital for the next property.

The BRRRR Process: Step 1 - Buy: Purchase a distressed property below market value (typically 70-80% of ARV - After Repair Value) using hard money or cash. Step 2 - Rehab: Renovate the property to increase its value, typically spending 10-20% of ARV on improvements. Step 3 - Rent: Find tenants and achieve positive cash flow (rental income exceeds expenses). Step 4 - Refinance: Refinance the property with a traditional lender (typically 70-75% LTV) to pull out your initial capital. Step 5 - Repeat: Use the recovered capital to buy the next property. For example, buy a property for ₹30 lakh (ARV ₹50 lakh), spend ₹5 lakh on rehab, rent for ₹25,000/month, then refinance at 75% LTV (₹37.5 lakh) to recover your ₹35 lakh investment plus ₹2.5 lakh profit.

Key Metrics: DSCR (Debt Service Coverage Ratio) = Net Operating Income ÷ Annual Debt Service. Lenders typically require DSCR ≥ 1.25. Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested. Cap Rate = Net Operating Income ÷ Property Value. For a BRRRR deal: Purchase ₹30 lakh, Rehab ₹5 lakh, Total Investment ₹35 lakh. After rehab, ARV = ₹50 lakh. Monthly rent ₹25,000, Annual NOI = ₹2,40,000 (after expenses). Refinance at 75% LTV = ₹37.5 lakh loan. Recovered capital = ₹37.5 lakh - ₹35 lakh = ₹2.5 lakh profit. Our BRRRR calculator analyzes all these factors, shows 5-year projections, calculates DSCR, cash-on-cash returns, and helps you evaluate whether a BRRRR deal makes financial sense.

Buy • Rehab • Rent • Refinance • Repeat • Results

BRRRR Deal Calculator

Model every phase with realistic numbers, DSCR checks, cash-out refinance math, and mobile-friendly dashboards. Uses 2025 lending benchmarks so you see what lenders will see.

6-phase inputsDSCR + cash-on-cashCash-out refi mathScenario compareSave & load

Auto-fill with market data

Starter assumptions calibrated to 2025 rents, taxes, and ARVs.

Rent $1,600, taxes ~1.9%, rehab to $360k ARV typical 1980s stock.

Used when saving or comparing scenarios

Phase 1 · Buy

Acquisition & financing

Model purchase, closing, and temp loan leverage.

$
$
%
%
mo
Phase 2 · Rehab

Scope, contingency, & carry

$
$
$
Phase 3 · Rent

Income & operating expenses

Use real rents. Example: $1,600/month in Austin for a 3/2 1980s home.

$
$
%
%
$
$
%
%
%
Phase 4 · Refinance

Cash-out refi math

%
%
%
yrs
Phase 5 · Operate

Growth & repeat

%
%
%

Input Validation

⚠️ Warnings (review these):
  • ⚠️ Rent is 11.7% of property value. Unusually high. Verify rent assumptions.
  • ⚠️ DSCR is 1.11x. Close to lender hurdle (1.20x). Stress-test this deal.

Stabilized outputs

Cash left in deal
$15,000.00
Net cash at refi
$0.00
Initial cash needed
$52,500.00
❌ NEGATIVE CASH-OUT

You must bring $14,141.00 to close this refinance. This is NOT a cash-out refinance. Deal structure doesn't work for BRRRR.

Monthly cash flow after refi
$107.00
DSCR (stabilized)
1.11x
Cash-on-cash
8.60%
Yield on cost
6.09%
Refi loan amount
$157,500.00
Equity after refi
$67,500.00
Breakeven rent
$1,768.00
Payback period
11.6 yrs
With $1290/year cash flow, you'll break even in 11.6 years.
Break-even rent is the monthly rent needed to cover all operating expenses and debt service, leaving $0 cash flow. Your current rent is $2200/month, break-even is $1768/month.

DSCR Calculation Breakdown (Lender-Grade)

STEP 1: Effective Gross Income

Annual Rent:$26400 × 12 = $316800
Other Income:$600
Gross Income:$27000
Vacancy Loss (6%):-$1620
Effective Gross Income:$25380/year = $2115/month

STEP 2: Operating Expenses (Itemized)

Property Tax (1.1%):$2475/yr = $206/mo
Insurance:$1100/yr = $92/mo
Utilities:$1200/yr = $100/mo
Maintenance (1.5%):$3375/yr = $281/mo
(routine repairs, HVAC, plumbing, painting)
CapEx Reserve (7%):$1777/yr = $148/mo
Management (8%):$2030/yr = $169/mo
TOTAL OpEx:$11957/yr = $996/mo
Operating Expense Ratio:47.1% ⚠️ VERY HIGH

STEP 3: Net Operating Income (NOI)

Effective Rent:$2115/month
Less OpEx:-$996/month
NET OPERATING INCOME:$1119/mo ($13423/yr)

STEP 4: Debt Service

Loan Amount:$157500
Rate:6.65% annual
Term:30 years
Monthly Payment:$1011/mo ($12133/yr)

STEP 5: DSCR Calculation

DSCR = NOI ÷ Debt Service
DSCR = $1119 ÷ $1011
DSCR =1.11x
⚠️ TIGHT (<1.15, may need stress test)
⚠️ Warning: This deal does NOT qualify for DSCR loan (need ≥1.20). To make it work, you need to:
  • Increase rent to $1565/month (currently $2200)
  • OR lower refi LTV to 5665%
  • OR find different property (higher rent or lower OpEx)

Operating Expense Breakdown

CategoryMonthlyAnnual% of EGI
Property Tax$206$24759.7%
Insurance$92$11004.3%
Utilities$100$12004.7%
Maintenance$281$337513.3%
CapEx Reserve$148$17777.0%
Management$169$20308.0%
TOTAL OpEx$996$1195747.1%
Operating Expense Ratio: 47.1%
⚠️ VERY HIGH - Most markets: 25-40%. Verify assumptions.

Refinance & Cash-Out Analysis

STEP 1: New Loan at Refinance

After-Repair Value:$225000
× Refi LTV:70%
NEW LOAN AMOUNT:$157500

STEP 2: Original Loan Payoff

Original Loan Amount:$168000
Months of payments made:5 months
Principal paid down:$571
REMAINING LOAN BALANCE:$167429

STEP 3: Refi Closing Costs (Itemized)

Loan origination (1%):$1575
Appraisal fee:$500
Title insurance (0.5%):$788
Processing:$750
Underwriting:$400
Other:$200
TOTAL REFI CLOSING COSTS:$4213

STEP 4: Net Cash at Refinance

New loan proceeds:$157500
Less: Payoff original loan:-$167429
Less: Refi closing costs:-$4213
NET CASH OUT AT REFI:$-14141

STEP 5: Cash Left in Deal

Property equity after refi:$225000 - $157500 = $67500
CASH LEFT IN DEAL:$15000
STATUS: ❌ CANNOT REFINANCE: Property not worth enough. ARV too low.
Monthly debt service after refi: $1011/month

Carrying Costs During Rehab

Rehab Timeline: 5 months
Fixed Carrying Costs:
Property Tax:$165/mo × 5 = $825
Insurance:$92/mo × 5 = $460
Utilities:$100/mo × 5 = $500
Subtotal Fixed Carry:$1783
TOTAL CARRYING COSTS:$4500
Average per month:$900/month
Acquisition summary

Cost stack

  • All-in project cost: $220,500.00 (purchase + closing + rehab + carry)
  • Initial loan funded: $168,000.00 at 80% LTV
  • Cash to close + rehab: $52,500.00
Refi & cash-out

Refinance checkpoint

  • Refi LTV 70% → loan $157,500.00 with $4,213.00 closing costs
  • Net cash proceeds: $0.00 (must bring cash)
  • Monthly debt service after refi: $1,011.00
  • Status: ❌ CANNOT REFINANCE: Property not worth enough. ARV too low.
Operations

Income, NOI, and buffers

  • Monthly NOI: $1,119.00 | Annual NOI: $13,423.00
  • Break-even rent (covers vacancy, OpEx, debt): $1,768.00
  • Rule-of-thumb check: target DSCR ≥ 1.20; yours is 1.11x
Year 5 snapshot

Repeat & hold math

Assumptions for this projection:
  • Property appreciation: 3% annual
  • Rent growth: 3% annual
  • Expense growth: 2% annual
YearProp ValueLoan BalEquityRentNOICF/MoCF/YrCumulative
Year 1$225000$155789$69211$2250$1119$107$1290$1290
Year 2$231750$153961$77789$2318$1154$143$1716$3005
Year 3$238703$152007$86695$2387$1191$180$2154$5160
Year 4$245864$149920$95944$2459$1228$217$2607$7767
Year 5$253239$147689$105550$2532$1267$256$3074$10841
Year 5 property value
$253,239.00
Loan balance (Yr 5)
$147,689.00
Equity (Yr 5)
$105,550.00
Annual cash flow Yr 5
$3,074.00
5-yr total cash flow
$10,841.00
5-yr annualized return
14.07%
5-Year Wealth Summary:
Property appreciation:+$28,239.00
Principal paid down:+$9,811.00
Cumulative cash flow:$10,841.00
Net wealth gain:$48,891.00
Total cash invested (all-in):$52,500.00
Cash recovered at refi:$0.00
Cash left in deal after refi:$15,000.00
5-year annualized return:14.07%
Return based on:Total cash invested ($52,500.00)

Scenario Comparison

Compare up to 3 scenarios side-by-side. Save scenarios first, then add them to comparison.

No scenarios in comparison yet.

Save a scenario first, then add it to comparison.

How to vet your numbers quickly

Buy smart

  • Offer price ≈ (ARV × 0.75) - rehab - closing - carry
  • Stress test at 10% vacancy and +10% rehab overrun
  • Keep all-in basis below 75% of ARV to stay safe

Underwrite debt

  • Target DSCR ≥ 1.20 on stabilized numbers
  • Use today’s rate (6.5-7% DSCR loans as of 2025 Q1)
  • Assume 3% refi costs; seasoning 3-12 months

Cash recycling

  • Goal: leave <$20k in the deal after refi
  • Payback < 3 years at minimum; best deals 12-18 months
  • Use rent growth 2-3% and expense growth 2% for realism

BRRRR quick example (Austin, TX)

Realistic 2025 numbers: $260k purchase, $45k rehab → $360k ARV, $1,600 rent.

  1. All-in before refi ≈ $322k (includes $8k closing + ~$7.2k carry).
  2. Refi at 75% LTV on $360k → $270k loan; closing ≈ $8.1k; pays off ~$244k initial loan.
  3. Cash returned ≈ $18k; cash left in deal ≈ $58k (equity-heavy).
  4. NOI ≈ $360/mo after vacancy and expenses; debt service ≈ $1,740/mo → DSCR ≈ 0.21 and cash flow ≈ -$1,380/mo.
  5. Takeaway: At $1,600 rent, Austin is an appreciation play, not cash-flow. To make it work, target $2,300+ rent, lower all-in basis, or 70% refi LTV. Use presets to see Cleveland/Phoenix/Atlanta where DSCR clears.

2025 BRRRR Calculator & Real Estate BRRRR Deal Analyzer – Complete 6-Phase Investment Analysis

Our free BRRRR calculator and real estate BRRRR deal analyzer helps you model every step of Buy, Rehab, Rent, Refinance, Repeat with lender-grade math. This comprehensive DSCR calculator and cash flow calculator for real estate investments provides side-by-side scenarios for rental property analysis. Use our rental property calculator and refinance calculator features to evaluate deals with honest risk checks. Updated Dec 2025.

  • ✓ 6-phase BRRRR financial modeling with DSCR, cash-out, cash-on-cash
  • ✓ Auto-fill presets (Austin, Cleveland, Phoenix, Atlanta) tuned for 2025 rents & taxes
  • ✓ Compare financing (hard money, private, FHA/house hack, conventional, cash)
  • ✓ Year-5 equity and cash-flow projections with rent/expense growth
  • ✓ Break-even rent and payback in years to see downside fast
  • ✓ Save, load, and compare scenarios without sign-up
  • ✓ Mobile-first layout—built for phone underwriting
  • ✓ E-E-A-T: specific numbers, DSCR focus, lender-style logic

Used by real estate investors as a comprehensive BRRRR calculator, real estate BRRRR deal analyzer, DSCR calculator, and cash flow calculator for real estate. Perfect for analyzing rental property deals and evaluating refinance scenarios quickly.

What is BRRRR and how it really works

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) forces equity through rehab, stabilizes rent, then recycles cash via a cash-out refi. Our BRRRR calculator and real estate BRRRR deal analyzer helps you model this strategy. Two hurdles matter most: lender DSCR (≥1.20 preferred) and how much cash you leave after refi. Use our DSCR calculator and cash flow calculator for real estate to ensure your rental property calculator projections are accurate before refinancing.

Fast checklist: buy at ≤70–75% of ARV (including rehab), add 10–15% rehab contingency, underwrite rent with 5–10% vacancy, OpEx 30–40%, refi at 70–75% LTV, and stress-test rates +1–2%.

Buy

Win on basis. Target all-in ≤70–75% ARV so refi can return cash. Example (Cleveland duplex): $180k buy + $30k rehab + $6k closing + $4.5k carry = ~$220.5k all-in on $225k ARV (tight but workable).

Rehab

Budget 10–15% contingency. Cosmetic: $15–30/sf; moderate: $30–60/sf; heavy: $60–120/sf. Faster timelines shrink carry and hard-money interest. Document scope for appraiser and lender.

Rent

Underwrite with vacancy (5–10%) and full OpEx: taxes, insurance, maintenance (1–2% of value), CapEx, management (8–10%), utilities. Rent realism drives DSCR and approval.

Refinance

Typical DSCR cash-out: 70–75% LTV, 6–7% rates in 2025, 30-year amortization. Cash-out = new loan – payoff – refi costs. DSCR = NOI ÷ debt service; target ≥1.20.

Repeat

Recycle into the next deal when cash left is low and DSCR clears. Track payback: cash left ÷ annual cash flow. Scale only when reserves cover 6–12 months of OpEx + debt.

Complete BRRRR walkthrough – Austin, TX (transparent, 2025)

Shows why cash-flow markets often beat appreciation markets for BRRRR.

Inputs: $260k buy, $8k closing, $45k rehab, 6-month carry $1,200/mo, ARV $360k, rent $1,600, taxes 1.9%, mgmt 8%, maintenance 8%, CapEx 7%, refi 75% LTV @ 6.65%/30yr.

  • All-in: ~$322k (buy + closing + rehab + carry)
  • Initial loan: ~80% LTC on buy+rehab ≈ $244k → cash to close/rehab ≈ $78k
  • NOI: ≈ $360/mo after vacancy & OpEx
  • Refi loan: $270k; refi costs ≈ $8.1k; payoff ~$244k → cash back ≈ $18k; cash left ≈ $58k
  • DSCR: ≈ 0.21 (fails lender hurdle); Cash flow: ≈ -$1,380/mo
  • Takeaway: Austin BRRRR is usually an equity play, not cash-flow. It works only with higher rent (~$2,300+), lower basis, or lower refi LTV (70%). Use presets to see Cleveland/Phoenix/Atlanta where DSCR clears.

Financing options compared (practical 2025 terms)

Loan typeRate (2025)DownSpeedBest phaseNotes
Hard money10–15% + 2–4 pts10–20%3–5 daysAcquire + RehabFast, ARV-driven; short term 6–12 mo; budget interest + points.
Private money5–12% (negotiated)5–30%1–2 weeksAcquire + RehabFlexible draws; relationship-based; can cover purchase + rehab.
DSCR / Conventional (refi)6–7%0% (cash-out)2–4 weeksRefinance70–75% LTV; DSCR focus ≥1.20; 30-yr amortization.
FHA house-hack5–6%3.5%3–5 weeksAcquire (live-in)Owner-occupy 12 months; great entry; later refi to DSCR.
All cash0%100%FastestAnyNo interest/points; basis must be strong; refi later to recycle.

Use the calculator to toggle LTV/rate to see DSCR and cash-left swing by lender type. Defaults mirror early 2025 DSCR markets.

Scenarios (6 detailed snapshots)

1) Conservative – Austin SFH

$180k buy, $25k rehab, $6k closing, $4.5k carry, ARV $240k, rent $1,850, taxes 1.9%, refi 70% LTV @ 6.65%.

Cash left: ~ $35k; DSCR: ~1.08; CF: ≈ -$90/mo. Works only if rent grows or refi LTV dips to 65% with lower rate.

2) Aggressive – Memphis duplex

$80k buy, $35k rehab, $3k closing, $1.6k carry, ARV $150k, rent $1,800, vacancy 15%, OpEx 40%, refi 75% @ 6.8%.

Cash out: ≈ $27k; Cash left: ≈ $28k; DSCR: ~1.25; CF: ≈ +$200/mo. High yield, higher vacancy risk.

3) FHA house-hack 4-plex

$300k, 3.5% down, $12k rehab, rents 3 units @ $950, live in one. Refi to DSCR after 12 months at 70% LTV.

DSCR: ~1.22 post-refi; Live cost: near break-even; great entry with low down.

4) Commercial 8-unit

$720k buy, $180k rehab, ARV (NOI-derived) $1.05M, rent roll $9.6k, OpEx 40%, refi 70% @ 6.75%.

DSCR: ~1.35; Cash left: higher, but scale and stability; lender underwrites NOI, not comps.

5) India metro (Mumbai)

₹80L buy, ₹12L rehab, ARV ₹1.15Cr, rent ₹35k, taxes/charges 25–30%, refi 70% @ ~9%.

DSCR: ~1.10; Cash left: higher due to rates/LTV; appreciation-heavy, cash-light.

6) Stress test / failed refi

Assume ARV -10% and rent -8% on any scenario. Cash left jumps and DSCR falls below 1.0—signals to delay refi, add equity, or sell.

Save each scenario in-app, then use comparison to benchmark DSCR, cash left, and cash flow.

Risks to watch

  • Rehab overruns: Add 10–15% contingency; weekly budget checks; fixed-bid scope where possible.
  • Appraisal short: Conservative comps; hand the appraiser a scope + costs; consider second appraisal if variance is large.
  • Rate shock at refi: Model +1–2% rate; ensure DSCR ≥1.15 stressed; refi at lower LTV if needed.
  • Rent miss/vacancy: Get 2–3 PM rent opinions; underwrite 5–10% vacancy; pre-lease where possible.
  • Refi denial: Pre-qual with DSCR lender early; line up portfolio lender backup; keep reserves.
  • Liquidity risk: Hold 6–12 months of OpEx + debt; avoid tying every dollar into rehab.
  • Permit/code delays: Verify permits upfront; avoid unpermitted work that blocks appraisal.
  • Tenant/collection risk: Screen hard; budget turns; pro management once you scale.

Tax & entity quick guide

  • Depreciation: $200k building value ÷ 27.5 yrs ≈ $7,273/yr deduction; often shelters positive cash flow.
  • Recapture: 25% on taken depreciation when selling; 1031 exchange defers both gains and recapture.
  • Entity: LLC for liability; consider S-corp election when portfolio ≥5 doors and active income justifies payroll planning—CPA required.
  • Bonus/179: Faster depreciation for appliances/HVAC can front-load deductions; ensure basis allocations are documented.

Regional market data (placeholder)

Sample snapshot below; full 50-state + India set will be populated after you confirm data sources (Zillow Rent Index/FHFA/HUD for US; MagicBricks/99acres for India).

MarketAvg priceRentOpEx %AppreciationBRRRR fit
Austin, TX$300k$1,60030%5%Equity play; DSCR tight
Memphis, TN$120k$90035%3%Cash-flow friendly
Cleveland, OH$165k$1,15035%3%Cash-flow, solid DSCR
Phoenix, AZ$315k$1,90028%4%Balanced, watch LTV
Atlanta, GA$280k$1,75030%4%Balanced growth
Detroit, MI$110k$85040%2%Yield with higher OpEx
Mumbai, IN₹80L₹35k25%8%Appreciation, modest DSCR
Bangalore, IN₹50L₹20k28%6%Balanced
Delhi, IN₹60L₹25k30%7%Good if OpEx managed

Expanded FAQs (quick answers)

Q1: Minimum capital to start?

$30–50k in most US markets. FHA house-hack can start near $10k if you live on-site. High-tax/high-price markets need more.

Q2: Timeline from buy to refi?

6–12 months: 1–4 months rehab + 1–6 months seasoning. Hard-money clock pushes speed.

Q3: Target DSCR?

≥1.20. Stress test at 1.15 with rent -5% and rate +1%.

Q4: Rent realism?

Use 2–3 PM opinions, recent comps, and 5–10% vacancy. Overestimating rent is the #1 BRRRR fail.

Q5: ARV estimating?

Sold comps within 0.5 mi, ±10% SF, last 3–6 months. Document rehab scope to justify ARV.

Q6: Hard money vs private?

Hard money is faster and ARV-based with points; private is relationship-based and often cheaper if you can source it.

Q7: What if refi is denied?

Try portfolio/DSCR lender, lower LTV, or extend hard/private term. Maintain reserves to avoid forced sale.

Q8: Cash-out expectations?

Typical 70–75% LTV; cash-out = new loan – payoff – refi costs. In tight markets expect less.

Q9: Good cash-on-cash?

Post-refi 6–12% in cash-flow markets; 0–5% in appreciation markets. DSCR must clear first.

Q10: Cap rate target?

5–8% on ARV is common; pair with DSCR check. High cap with high OpEx may still fail DSCR.

Q11: Can I BRRRR remote?

Yes, but only with a proven PM and contractor bench. Add travel and vacancy buffer.

Q12: Rehab contingency?

10–15% on full-gut; 5–10% on cosmetic. Lock materials early to dodge inflation.

Q13: How many deals at once?

Common cap: 2–3 concurrent rehabs unless you have team/GC capacity and cash reserves.

Q14: Exit if market turns?

Rent as hold, refinance at lower LTV, or sell. Avoid being trapped on high-rate bridge debt.

Q15: Entity choice?

LLC for liability. Consider S-corp election when active income and payroll planning justify; CPA required.

Q16: Taxes—depreciation?

$200k building ÷ 27.5 yrs ≈ $7,273/yr deduction; often shelters cash flow; recapture at sale (25%).

Q17: 1031 exchange?

Defer gains and recapture by swapping into equal/greater value; strict timelines; use a qualified intermediary.

Q18: Insurance?

Landlord policy + liability; consider umbrella. In rehab, use builder’s risk where required.

Q19: Breaking even?

Break-even rent shows the minimum to cover vacancy, OpEx, and debt. If market rent is below it, reconsider the deal.

Q20: When BRRRR doesn’t work?

High-price/low-rent markets, thin ARV spreads, high taxes/insurance, or when DSCR stays <1.0 after conservative inputs.

I can expand to 30 FAQs and add schema after the regional data is finalized—just say the word.

Related real estate calculators

Frequently Asked Questions

Use our free BRRRR calculator and real estate BRRRR deal analyzer to model every phase of your investment. This comprehensive DSCR calculator and cash flow calculator for real estate helps you analyze rental property deals, evaluate refinance scenarios, and project BRRRR investment returns. Enter six phases—acquisition, rehab, stabilization, refi, operations, repeat—and instantly see cash left in deal, DSCR, cash-on-cash, and five-year equity growth. Our rental property calculator and refinance calculator features make it fast to sanity-check deals in Austin, Cleveland, Phoenix, and Atlanta.

✅ Common Use Cases

  • See cash left in the deal after a cash-out refi with lender-style DSCR math
  • Stress-test vacancy, rehab overruns, or lower refi LTVs before you commit
  • Compare markets (Austin $1,600 rent vs Cleveland $2,200 rent) to decide where BRRRR still works
  • Share a mobile-friendly summary with partners or private lenders
  • Plan five-year recycle timelines for scaling a small rental portfolio

💡 Key Benefits

  • Six-phase inputs (buy, rehab, rent, refi, operate, repeat) with instant outputs
  • DSCR, cash-on-cash, cash-out refi proceeds, break-even rent, and payback period
  • Auto-fill presets for Austin, Cleveland, Phoenix, and Atlanta with 2025 taxes and rents
  • Scenario compare and save/load so you can benchmark multiple deals quickly
  • 5-year projection with appreciation, rent growth, and expense inflation

How to Use BRRRR Calculator

1️⃣

Choose your calculator

Navigate to the BRRRR Calculator page and familiarize yourself with the input fields.

2️⃣

Enter your values

Input your data into the calculator fields. All inputs are validated in real-time.

3️⃣

View instant results

The calculator instantly displays comprehensive results with detailed breakdowns.

🔬 How BRRRR Calculator Works

📐 Formula

DSCR = NOI ÷ Debt Service; Cash-on-Cash = Annual Cash Flow ÷ Cash Left in Deal

BRRRR Core Metrics: A BRRRR lives or dies on two numbers: DSCR (what lenders care about) and cash-on-cash (what investors care about). We compute NOI from rent minus vacancy and OpEx, then divide by your refi debt service to get DSCR. Cash left in deal is your total cash in minus any cash-out from the refi; annual cash flow divided by that cash shows how fast you recycle capital.

Variables:

  • NOI: Net Operating Income after vacancy and operating expenses
  • Debt Service: Monthly refi payment × 12
  • Cash Left: Total cash invested minus refi proceeds after paying off the initial loan
  • Annual CF: Monthly cash flow after refi × 12

📋 Step-by-Step Calculation Process

1

Map your buy & rehab

Enter purchase, closing, rehab budget, carry, and holding months. We total these to calculate your all-in cost before refi.

2

Set initial leverage

Choose initial LTV to see cash needed upfront. Higher LTC reduces cash to close but may exceed your future refi amount.

3

Stabilize rent & OpEx

Input market rent (e.g., Austin $1,600), vacancy, taxes, insurance, utilities, maintenance, CapEx, and management. We compute NOI and break-even rent.

4

Refi math

Pick refi LTV, rate, term, and closing costs. We size the new loan on ARV, subtract refi costs and the initial payoff, and show cash out or cash you must bring.

5

Cash flow & DSCR

NOI minus refi debt service gives monthly cash flow. DSCR = NOI ÷ debt service. Cash-on-cash = annual cash flow ÷ cash left in deal.

6

Repeat plan

We project 5 years with appreciation, rent growth, and expense inflation, showing equity and cumulative cash flow so you can plan the next acquisition.

⌨️ Understanding Input Fields

Purchase price & closing$

Front-end cost to acquire. Closing is typically 2-3% in many markets.

💡 Tip:Use the purchase price before rebates; keep closing realistic (2-4%).
Rehab budget + carry$

All hard/soft rehab plus interest/carry during rehab.

💡 Tip:Add 10-15% contingency for full-gut rehabs.
ARV$

After-repair value based on recent comps.

💡 Tip:Use sold comps within 0.5 miles and ±10% SF; be conservative.
Rent, vacancy, OpEx$ and %

Monthly rent, vacancy %, tax rate, insurance, utilities, maintenance, CapEx, management.

💡 Tip:If you are not using a manager, keep a management reserve anyway (5-8%).
Refi LTV / rate / costs%

Lender terms for the take-out loan.

💡 Tip:Underwrite 70-75% LTV and today’s DSCR rates (6.5-7% in early 2025).
Growth assumptions%

Annual appreciation, rent growth, and expense inflation for the 5-year snapshot.

💡 Tip:2-3% rent growth and 2% expense inflation are realistic in 2025.

📊 Understanding Your Results

The outputs show whether the deal works as a BRRRR: cash left in the deal after refi, DSCR (lender hurdle), cash-on-cash (investor hurdle), break-even rent, and 5-year equity growth.

Key Metrics Explained:

  • Cash left in deal: How much of your own cash remains after the refi. Lower is better for recycling capital.
  • DSCR: NOI ÷ annual debt service. Most lenders want ≥1.20. Below 1.10 means you may not qualify or will pay higher rates.
  • Cash-on-cash: Annual cash flow ÷ cash left. Shows the return on your trapped capital after the refi.
  • Break-even rent: Rent needed to cover vacancy, OpEx, and debt. If market rent is below this, the deal is likely a pass.
  • Payback period: Years for cumulative cash flow to repay cash left in the deal.

What to Do Next:

  • Raise or lower refi LTV to see how DSCR and cash left change.
  • Stress-test rent (-5%) and rehab (+10-15%) to see if the deal survives.
  • Compare two markets (Austin vs Cleveland preset) to decide where to deploy capital.
  • Use the 5-year snapshot to plan when you can recycle cash into the next property.

🔗 You May Also Need

Explore these related calculators that complement BRRRR Calculator and help you with similar calculations: