OnSumo Tools

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

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 this tool works

BRRRR is a real estate investment strategy that extracts equity from a renovated property through a cash-out refinance, then redeploys that capital into the next deal. Total cash in = (Purchase price x down payment %) + rehab cost + purchase closing costs, plus carrying cost (hard money interest during rehab). After the ARV is set, the refi loan = ARV x LTV, and capital recycled = cash pulled out minus refinance closing costs. The tool then calculates post-refinance cash flow, DSCR, and cash-on-cash return on the capital left in the deal.

Worked example

Purchase price: $120,000. Down payment: 20% ($24,000). Rehab: $30,000. Purchase closing costs: $3,000. Hard money at 10% for 4 months. Total invested: $60,200. ARV: $200,000. Refinance at 75% LTV: $150,000 refi loan. Cash pulled out: $54,000. Capital recycled: $50,000 after $4,000 closing costs. Capital left in: $10,200 (83% recovered). At 7% refi rate on a $150,000 30-year loan, monthly cash flow is close to breakeven, with approximately 6 repeat deals fundable from the same starting capital.

Frequently asked questions

  • What does BRRRR stand for?

    Buy, Rehab, Rent, Refinance, Repeat. You purchase a distressed property at a discount, renovate it to increase its value, rent it to cover carrying costs and generate income, refinance based on the new appraised value to pull equity out, then use the recovered capital to repeat the process on the next deal.

  • What is DSCR and why does it matter?

    Debt Service Coverage Ratio equals annual net operating income divided by annual debt service (mortgage payments). Most DSCR lenders require a minimum of 1.25x, meaning the property generates 25% more income than it costs to service the debt. Falling below 1.25x means the property may not qualify for a DSCR loan at the proposed loan amount.

  • What if I cannot fully recover my capital?

    A partial recovery is still valuable. Recovering 80% of your capital means each subsequent deal costs you only 20% of what a conventional purchase would require. Even leaving 30-40% of capital in a deal can allow you to do three deals with the same money you would otherwise have spent on one.

  • What is the 70% rule in BRRRR?

    The 70% rule says your all-in cost (purchase plus rehab) should not exceed 70% of the ARV. At 70%, a 75% LTV refinance covers your full cost and returns some cash. This calculator shows the exact numbers so you are not relying on a rule of thumb. Compare this figure across multiple properties in the same market and asset class before drawing conclusions about relative value.

  • How does the hard money loan affect the analysis?

    Hard money loans typically carry 9-12% interest rates and short terms (6-24 months). They are used during the buy and rehab phase before the permanent DSCR refinance. The carrying cost calculation models the interest you pay on the hard money loan during rehab. A longer rehab period increases this cost, which reduces your net capital recycled.

  • What is the difference between cash-on-cash return and cap rate?

    Cap rate = NOI / property value, regardless of financing. Cash-on-cash return = annual cash flow / cash invested. Cap rate measures the property's unlevered return. Cash-on-cash measures your return on the specific capital you have deployed. BRRRR investors focus on cash-on-cash because the strategy's whole point is minimizing capital left in while maximizing cash flow.

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