Calculate your BRRRR rental property returns in 60 seconds. See monthly cash flow, cash-on-cash ROI, and how much capital you'll recover through refinancing.
15% contingency added automatically
Market rent for similar properties
Typical: 75% for rental property refinance
Current rental rates: 6.5-7.5%
Standard: 8-10% of monthly rent
Flip Analyzer Pro automatically compares Wholesale, Flip, and BRRRR strategies for every property, showing you which path makes the most money.
No credit card required
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat - a real estate investing strategy that allows you to build a rental property portfolio while recycling most of your initial capital. Unlike traditional buy-and-hold, BRRRR lets you recover 70-100% of your investment through refinancing, then use that capital to buy the next property.
The BRRRR strategy was popularized by BiggerPockets and has become the go-to method for investors who want to scale a rental portfolio quickly without needing millions in capital. Done correctly, you can acquire 5-10 rental properties using the same $100K starting capital.
Purchase a distressed property below market value. Target properties that need $30K-80K in rehab but are priced accordingly. Your goal: buy at 65-70% of ARV or less.
Example: $150K purchase price on a property worth $280K after repairs
Renovate the property to force appreciation. Focus on value-add improvements: kitchens, bathrooms, flooring, paint. Budget 4-6 months for rehab including permitting delays.
Example: $50K rehab budget with 15% contingency = $57,500 total
Place a qualified tenant using 3X rent income rule. Most lenders require 6-12 months of rental history before refinancing, though some allow immediate refinance with signed lease.
Example: $2,000/month market rent with tenant making $6,000+/month
Get a cash-out refinance based on the new ARV. Lenders typically loan 70-75% LTV on rental properties. The refi proceeds recover most or all of your invested capital.
Example: $280K ARV × 75% LTV = $210K loan payoff, recovering $205K of your $210K total investment
Take the recovered capital and start over with property #2. Each BRRRR cycle adds a cash-flowing rental to your portfolio while recycling the same capital.
Goal: Acquire 1-2 properties per year using BRRRR method
Monthly Cash Flow = Monthly Rent - (P&I + Taxes + Insurance + Prop Mgmt + Vacancy + CapEx)
This is your net profit each month after all expenses. Target $200+/month minimum to account for unexpected repairs and market fluctuations. Properties cash-flowing $300-500/month are solid. $500+ is excellent.
Cash-on-Cash ROI = (Annual Cash Flow / Cash Left in Deal) × 100
This measures your return on actual capital invested. Target 10% minimum for viable BRRRR deals. Anything above 15% is excellent. Above 20% is rare but achievable in the right markets.
Why it matters: If you leave $15K in the deal and earn $1,800/year cash flow, that's a 12% cash-on-cash return - better than most stock market returns with the added benefit of property appreciation and loan paydown.
Cash Left in Deal = Total Cash Invested - Refinance Loan Amount
This is the capital you can't recover through refinancing. Target $20K or less left in the deal. The lower this number, the faster you can repeat the BRRRR cycle. The holy grail is a "zero left in" deal where refinance proceeds = total investment.
| Factor | Choose Flip | Choose BRRRR |
|---|---|---|
| Cash Need | Need cash now | Building long-term wealth |
| Market Rents | Low rent-to-price ratio (<0.8%) | Strong rents (1%+ rule) |
| Time Horizon | Quick profit (6 months) | Long-term hold (5-10+ years) |
| Financing | Hard money OK | Need conventional refi option |
| Property Location | High-appreciation markets | Cash-flow markets |
| Tax Strategy | OK with active income tax | Prefer passive income |
Bank appraisals often come in 5-10% below your estimate. Use conservative ARV to avoid getting stuck with a low-LTV refi that leaves too much capital in the deal.
Monthly rent should be at least 1% of purchase price + rehab. If you're at 0.8% or less, you'll struggle to cash flow after refinancing. Example: $200K all-in cost needs $2,000+/month rent minimum.
Cash-out refinance costs 2-3% of new loan amount ($4,200-6,300 on a $210K loan). Factor this into your cash-left-in-deal calculation.
Even if you self-manage initially, budget 8-10% for property management. As you scale to 5-10 properties, you'll need professional management - don't inflate your cash flow projections.
Most lenders require 6-12 months of ownership ("seasoning period") before cash-out refinance. Some require 6 months of rental history. Rushing the refi can result in denial or worse terms.
You need two separate financing stages for BRRRR:
BRRRR is ideal if you:
BRRRR is NOT ideal if you need immediate cash, invest in low-rent markets, or want passive investing without renovation management.
Flip Analyzer Pro is the only calculator that automatically ranks all three exit strategies (Wholesale, Flip, BRRRR), showing you which path maximizes profit for each property.
Try Free - 3 Analyses Included