Investor tools
BRRRR Analysis
The BRRRR strategy funds a purchase and rehab with short-term money, then refinances on the improved value to pull cash back out. Its outcome depends heavily on the after-repair value and the refinance terms, so test them carefully.
The figures shown are example values. Replace them with your own; rates, taxes and insurance vary by lender, property and municipality.
Cash left in the deal
$28,520
- All-in cost
- $247,520
- Cash in before refinance
- $103,520
- Cash returned at refinance
- $75,000
- New mortgage payment
- $1,497
- Monthly cash flow
- −$17
- DSCR
- 0.99×
- Cash-on-cash (on cash left in)
- -0.7%
- Equity after refinance
- $75,000
How this is calculated
- All-in costPrice + closing + rehab + holding costs + acquisition interest
- $247,520
- Cash in before refinanceAll-in cost − acquisition loan
- $103,520
- Refinance loanAfter-repair value × refinance LTV
- $225,000
- Cash returned at refinanceRefinance loan − acquisition loan payoff − refinance closing costs
- $75,000
- Cash left in the dealCash in before refinance − cash returned
- $28,520
- Monthly cash flow after refinanceRent after vacancy − operating expenses − new mortgage payment
- −$17
Acquisition interest is interest-only for the months until refinance. Lenders may cap the refinance on cost rather than value, or require seasoning; confirm with your lender.
Estimates for information only, not loan offers, appraisals or tax advice. Every input is checked against a stated range, and the formulas are shown under “How this is calculated”. More tools: all investor tools.
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