BRRRR Strategy Simulator
This calculator models a complete BRRRR real estate cycle (Buy, Rehab, Rent, Refinance, Repeat) to show how much capital you recover after the refinance, what your cash-on-cash return is on the capital you leave in the deal, and how many additional properties you could fund from the same starting investment.
100% client-side. Deal inputs stay in your browser (ons-brrrr-inputs).
Capital recycled
$50,000 (83.1%)
Capital left in: $10,200
Buy
$120,000 purchase, $24,000 down
Rehab
$30,000 over 4 mo
Rent
$1,400/mo rent, NOI $10,456/yr
Refinance
$150,000 loan, $54,000 cash out
Most lenders require DSCR at or above 1.25. This deal shows 0.87x and may not qualify for refinancing.
Monthly cash flow is negative after refinance (-$127/mo). You may still recycle capital, but the hold needs stronger rent or terms.
Total invested
$60,200
Refi loan
$150,000
Cash pulled out
$54,000
Capital left in
$10,200
CoC return (post-refi)
-14.9%
Monthly cash flow
-$127
Mortgage $998/mo
Repeat potential
You recovered $50,000 to deploy in the next deal. Starting with $60,200 total invested, you could fund about 5 similar deals if each leaves $10,200 in the property.
Purchase and rehab
Rent and ARV
Refinance
How does the BRRRR Calculator -- Real Estate Strategy work step by step?
This calculator models the BRRRR strategy: Buy, Rehab, Rent, Refinance, Repeat. You enter purchase price, rehab cost, after-repair value (ARV), rental income, and refinance terms. The tool calculates your total invested cash, how much you pull out at refinance, and your final cash remaining in the deal after refinancing. It also shows cash-on-cash return based on rental income versus cash left in the property. The refinance step is critical: lenders typically allow 75-80% loan-to-value on the ARV, meaning you can pull most or all of your cash out if you add enough value during rehab.
When should you use the BRRRR Strategy Simulator?
Use this calculator when evaluating a potential BRRRR property to see if the numbers support recycling your capital. It helps you determine whether the rehab will create enough equity to allow a cash-out refinance that returns most of your initial investment. It is especially valuable when comparing multiple properties to see which offers the best cash-on-cash return after refinance, or when deciding whether to refinance or sell after the rehab is complete. The tool is also useful for setting rehab budgets: you can work backward from the ARV and refinance LTV to see how much rehab spend is justified.
How do you read the BRRRR Strategy Simulator results?
The calculator shows cash left in the deal and cash-on-cash return. If you pull out 100% or more of your invested cash at refinance, you have infinite return potential because you own a cash-flowing asset with none of your own money remaining in it. Most BRRRR deals leave 20-30% of invested cash in the property after refinance. A cash-on-cash return above 8-12% is typically considered strong. If the return is below 8%, the deal may not justify the execution risk and effort unless you expect significant appreciation or rent growth.
What does a typical BRRRR Calculator -- Real Estate Strategy result look like?
Purchase price: $150,000. Rehab: $50,000. ARV: $250,000. Total invested: $200,000 (ignoring closing costs for simplicity). Refinance at 75% LTV on ARV: $187,500 loan. You pull out $187,500 and pay off the original $150,000 purchase loan, leaving $37,500 cash returned. Cash left in deal: $200,000 - $37,500 = $162,500. Monthly rent: $2,000. Annual rental income: $24,000. Cash-on-cash return: $24,000 / $162,500 = 14.8%. If you can push ARV to $270,000 with the same rehab, you pull out $202,500 (75% of $270,000), recovering all your cash and leaving only $0 in the deal, creating infinite return on rental income.
Frequently asked questions
What is the BRRRR strategy and why do investors use it?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Investors use it to recycle the same capital across multiple properties instead of leaving all their cash tied up in one deal. The strategy works because you create equity during the rehab phase, then extract that equity via refinance while keeping the property and its cash flow. This allows you to scale a portfolio faster than traditional buy-and-hold, where your cash stays locked in each property. The OnSumo rental ROI calculator can help you compare BRRRR returns to traditional buy-and-hold strategies.
What loan-to-value ratio do lenders allow on a BRRRR refinance?
Most lenders cap cash-out refinances on investment properties at 75% LTV, though some go up to 80%. This means if your property appraises at $250,000 after rehab, you can borrow up to $187,500 (75% of ARV). The difference between the new loan and your original purchase loan is the cash you pull out. If you bought for $150,000 and refinance at $187,500, you pull $37,500 back. Lenders require a full appraisal and typically a seasoning period of 6-12 months before allowing the refinance.
How much rehab cost is too much for a BRRRR deal?
Rehab cost is too high when the after-repair value does not support pulling most of your invested cash back out at refinance. A good rule: total invested capital (purchase + rehab + closing costs) should not exceed 75-80% of the ARV. If you invest $200,000 total and the ARV is $250,000, you can refinance at $187,500 (75% LTV), pulling back $37,500 and leaving $162,500 in the deal. If total invested exceeds 80% of ARV, you will have a large amount of cash stuck in the property, reducing your ability to repeat the strategy.
What cash-on-cash return should I target in a BRRRR deal?
Target a cash-on-cash return of 8-12% or higher after refinance. This is annual rental income divided by the cash you leave in the property after pulling cash out at refinance. A 10% return means if you leave $100,000 in the deal, you collect $10,000 per year in rental income. Lower returns may still justify the deal if you expect strong appreciation or rent growth, but execution risk and effort typically require at least 8% to make the strategy worthwhile compared to passive investments.
Can I pull out more cash than I put in with BRRRR?
Yes, if you add enough value during rehab. If you buy for $100,000, spend $30,000 on rehab, and the ARV is $200,000, you can refinance at 75% LTV ($150,000). You pull out $150,000 and pay off the original $100,000 purchase loan, leaving $50,000 returned. Your total invested was $130,000, so you pull back $50,000, leaving $80,000 in the deal. To pull 100% or more, you need the refinance proceeds to exceed your total invested capital, which requires a high ARV relative to purchase price plus rehab cost.
What is the seasoning period for a BRRRR refinance?
Most lenders require a 6-12 month seasoning period between purchase and refinance. This means you must own the property and show rental income for at least 6 months before the lender will allow a cash-out refinance based on the new appraised value. Some portfolio lenders and local banks waive seasoning, but most conventional lenders enforce it. Plan your rehab timeline accordingly: if you finish rehab in 3 months, you still wait 3-9 more months before refinancing.
How do I estimate after-repair value accurately?
Use recent sales of comparable properties (comps) in the same neighborhood that match your target condition after rehab. Look for homes sold within the past 3-6 months, within 10% of your square footage, with similar bed/bath counts and finishes. Adjust for differences (e.g., extra bedroom, newer kitchen). Real estate agents and appraisers use the same method. Overestimating ARV is the most common BRRRR mistake: it leads to underperforming refinances and cash left in the deal. The OnSumo cap rate calculator can help you cross-check ARV estimates using income-based valuation.
What happens if the appraisal comes in below my ARV estimate?
You pull less cash out at refinance and leave more capital in the deal, reducing your cash-on-cash return and ability to repeat the strategy. If you estimated $250,000 ARV and the appraisal comes in at $230,000, your 75% LTV refinance drops from $187,500 to $172,500. That is $15,000 less cash returned to you. To avoid this, be conservative with ARV estimates and verify comps before buying. If the appraisal is far below your estimate, you can challenge it with additional comps or refinance later after more appreciation.
Should I refinance immediately or wait for appreciation?
Refinance as soon as the seasoning period ends if you need the cash for another deal. Waiting for appreciation increases your ARV and cash-out potential, but it also delays your next purchase and reduces the velocity of your capital. If you have another deal ready, refinance now. If the market is appreciating rapidly and you have no immediate use for the cash, waiting 6-12 months may allow you to pull significantly more out. The OnSumo cash-on-cash return calculator can help you model both scenarios.
What are the biggest risks in a BRRRR deal?
The three biggest risks are: overestimating ARV, underestimating rehab cost, and vacancy after refinance. Overestimating ARV means you cannot pull enough cash out. Underestimating rehab cost ties up more capital than planned. Vacancy after refinance means you carry the new, larger mortgage payment without rental income, which can force a sale at a loss. Mitigate these risks by conservative ARV comps, detailed rehab scopes with contractor bids, and tenant screening before refinancing. The OnSumo rental yield calculator can help you stress-test rental income assumptions.