How to use the BRRRR calculator
- Buy & rehab: purchase price, buying costs, rehab budget and holding costs during the work.
- Refinance: the after-repair value (ARV), the lender's loan-to-value, refinance closing costs and the new rate.
- Rent: monthly rent, vacancy, property tax, insurance, maintenance and management.
The example step by step
| Step | Amount |
|---|---|
| Purchase + 3% buying costs | $133,900 |
| Rehab | $35,000 |
| Holding costs | $5,000 |
| Total cash in | $173,900 |
| New loan (75% of $230,000 ARV) | $172,500 |
| Refinance closing costs (3%) | − $5,175 |
| Cash left in the deal | $6,575 |
| Equity after the refinance | $57,500 |
After the refinance, $2,100 of rent covers the new mortgage and expenses with about $150 a month to spare. Most of your original cash is free to use on the next property.
The 75% rule of thumb
Many BRRRR investors aim for an all-in cost of about 75% of ARV or less. Here, $173,900 all-in against a $230,000 ARV is about 76%, which is why only a little cash stays in. If the appraisal comes in at $210,000 instead, the new loan drops to $157,500 and about $21,000 stays in the deal. Always test a lower ARV.
Common mistakes
- Optimistic ARV: use recent sales of similar renovated homes, not list prices.
- Rehab overruns: add 10–20% contingency.
- Forgetting holding costs: interest, utilities, insurance and taxes during the work.
- Ignoring seasoning: many lenders wait 6–12 months before using the new value.
- Thin cash flow: a bigger loan means a bigger payment. Make sure the rent still covers it with room for repairs and vacancy.
Compare with other ways to invest
Not every rental needs a rehab. Use the cash on cash return calculator for a standard purchase, the cap rate calculator to compare properties, and the closing costs calculator for purchase costs. Starting out? Read how to become a landlord.
Keep each property's numbers clean
RentRoll is a landlord dashboard that tracks rent, repairs and expenses per property, so you can see whether each BRRRR deal performs as planned. Summit shows your growing equity in your overall net worth. Both have a free demo with sample data.
Estimates only. Appraisals, rates and lender rules vary; not investment advice.
Frequently asked questions
What is the BRRRR method?
How much cash can you pull out with a BRRRR refinance?
What makes a BRRRR deal work?
What is the seasoning period?
What are the risks of BRRRR?
Why is cash-on-cash return so high in a BRRRR?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
