BRRRR Strategy Calculator
Model your entire holding lifecycle. Calculate how much capital you'll leave in the deal, your cash-flow after the cash-out refinance, and your portfolio's DSCR.
What you’ll track
A perfect BRRRR allows you to scale indefinitely.
Cash Left in Deal
Your true sunk cost
Monthly NOI
Rents minus op-ex
DSCR
Lender approval metric
Cash-on-Cash
Yield on trapped equity
Jump to
BRRRR Deal Modeler
Update the numbers below to see how changes in LTV, rehab timelines, or rents impact your cash flow and scale probability.
1. Buy & Rehab
2. Refinance
3. Rent & Operations
BRRRR Metrics
The metrics that determine if you can scale your portfolio infinitely.
Cash Left in Deal
-$6,800
Perfect BRRRR. You pulled all your original cash out (and then some) when refinancing!
Cash-on-Cash Return
Infinite
Annual cash flow ÷ Cash left in deal.
DSCR
1.17×
Target > 1.25 for easier refi loans.
Monthly Cash Flow
$181
After the new refi mortgage $1,049/mo and op-ex.
Scale insight
The lower your Cash Left in Deal, the faster you can buy the next property. If it's $0 or below, you can scale infinitely.
Source BRRRR deals before they hit the market
The BRRRR strategy relies on finding deep discounts. Access our nationwide database of pre-foreclosures and auctions to find the equity spread you need to make the math work.
How to analyze a BRRRR deal
The BRRRR method relies heavily on accurate underwriting and understanding commercial debt metrics.
What is Cash Left in Deal?
The ultimate portfolio scaling metric.
"Cash Left in Deal" is the money that is permanently trapped in the property after all purchase, rehab, and holding phases have been completed, minus the cash you get back during the refinance phase.
A standard example: You buy a house with a $20k down payment, spend $30k on rehab, and $5k on closing/holding costs (Total invested= $55k). When you refinance, if the lender gives you a new loan that pays off your original mortgage *and* gives you $45k back in cash, you leave $10k trapped in the deal.
If the new loan gives you $60k back, your cash left is effectively negative. You got paid $5k to acquire a cash-flowing asset, and your ROI is infinite.
The Formula
Understanding DSCR
How lenders evaluate BRRRR properties.
DSCR Targets
< 1.0x
Property loses money each month. Unlikely to secure loan.
1.0x - 1.2x
Breakeven. Strict guidelines apply.
> 1.25x
Standard target for favorable refinance terms.
In traditional mortgages, lenders look at your personal DTI (Debt-to-Income) ratio. For commercial or non-QM investment loans common in BRRRR strategies, lenders look at the DSCR (Debt Service Coverage Ratio).
Calculating DSCR
DSCR is your property's monthly Net Operating Income (Gross Rents minus vacancy, taxes, insurance, and maintenance) divided by your new potential monthly mortgage payment.
If the property brings in $1,500 in clean NOI, and the new mortgage payment will be $1,000, your DSCR is 1.5x. The higher the DSCR, the lower the risk to the lender, which often translates to better rates or higher LTV caps.
BRRRR Strategy FAQs
Common questions regarding the Buy, Rehab, Rent, Refinance, Repeat methodology.
What is the BRRRR strategy in real estate?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Investors buy distressed properties (like foreclosures), renovate them to force appreciation, rent them out to cover costs, and then use a cash-out refinance to pull their original capital back out to fund the next deal.
Why is 'Cash Left in Deal' the most important BRRRR metric?
Your Cash Left in Deal dictates how fast you can scale. The goal of a perfect BRRRR is to pull 100% of your initial investment back out during the refinance phase. If your cash left in the deal is $0, your cash-on-cash return is technically infinite, and you can reuse that capital immediately.
What is a good DSCR for a BRRRR refinance?
Debt Service Coverage Ratio (DSCR) is a property's net operating income divided by its mortgage payment. Most DSCR lenders want to see a minimum ratio of 1.20x or 1.25x to approve a cash-out refinance, ensuring the rental income comfortably covers the new loan.
Does this BRRRR calculator include holding costs?
Yes. A common mistake new investors make is ignoring the monthly holding costs (like hard money interest, taxes, and utilities) incurred during the 'Buy and Rehab' phase. This calculator adds holding costs to your total required capital.