Model the full Buy, Rehab, Rent, Refinance, Repeat cycle
Enter your purchase price, rehab budget, ARV, and refinance terms to see exactly how much capital you recycle, what the post-refi cash flow looks like, and whether the DSCR holds up. Results update instantly.
Enter your deal numbers below. All results update in real time.
Acquisition
Post-Rehab Income & Expenses
Refinance
Acquisition
Refinance
Cash Left in the Deal
$33,950
85.84% of capital recycled
Post-Refi Performance
Monthly Cash Flow
-$8
DSCR
0.99x
Cash-on-Cash
-0.29%
Capital Recycled
85.84%
Free — includes full deal scoring, scenarios & reports
BRRRR has two phases. The acquisition phase creates equity. The refinance phase recycles capital. Both need to work.
Add up everything you put in before the refinance: purchase price, rehab budget, purchase closing costs (typically 2–4%), and holding costs during the rehab period (hard money interest, insurance, utilities). This is your total capital at risk.
Calculate net operating income using realistic post-rehab rents with a vacancy factor (5–8% is typical). Subtract all operating expenses: taxes, insurance, maintenance, management (budget 8–10% even if self-managing), and CapEx reserves. Do not include the mortgage — NOI is pre-financing.
Your new loan is based on ARV, not purchase price: Loan = ARV × LTV%. Cash returned = new loan minus refi closing costs. Be conservative on ARV — use sold comps within 0.5 miles and 6 months. If the appraisal misses, your capital recycling gets worse fast.
Cash left = Total invested − Cash returned. The lower this number, the more capital you've recycled. Aim for 0–20% of your original investment remaining in the deal. The 70–75% rule says your all-in cost (purchase + rehab) should not exceed 75% of ARV for full capital recovery at 75% LTV.
Calculate the new monthly mortgage (P&I) and check three things: Does NOI cover the payment (DSCR ≥ 1.15)? Is monthly cash flow positive, or at least break-even? What is the cash-on-cash return on capital still in the deal? A great BRRRR deal scores well on all three. Most deals today pass on capital recycled but require careful attention to post-refi DSCR.
BRRRR became famous in the 3–5% rate era, when investors could pull out all their capital and cash flow $300–500/month. At 7%+, the math is different. The post-refi mortgage is significantly higher, which means cash flow is thin or break-even even on deals with strong NOI.
Capital Recycled
Cash Returned ÷ Total Invested
Target 80%+. Getting 100% back requires buying at (ARV × 0.75) − rehab or below.
Cash Left in Deal
Total Invested − Cash Returned
The amount of your capital that stays in the deal after refinancing. Lower is better.
Post-Refi DSCR
NOI ÷ Annual Debt Service
Must cover the new mortgage. Target 1.15+ minimum. Below 1.0 means negative cash flow.
The strategy still works — it just requires more discipline on purchase price. Every dollar you overpay above the 75% threshold is a dollar of capital that stays in the deal permanently. That's why the max purchase price calculation matters more now than it did in 2021.
| Metric | Strong Deal | Acceptable | Red Flag |
|---|---|---|---|
| Capital Recycled | 90–100%+ | 75–90% | Below 70% |
| Post-Refi DSCR | 1.25+ | 1.10–1.24 | Below 1.0 |
| Monthly Cash Flow | $200+/mo | Break-even to $200 | Negative |
| Purchase-to-ARV (incl. rehab) | Below 70% | 70–75% | Above 80% |
| Equity Created | 20%+ of ARV | 10–20% | Below 10% |
A BRRRR calculator models both phases of the strategy. Phase one covers acquisition: purchase price, rehab budget, closing costs, holding costs, and your total cash invested. Phase two covers the refinance: new loan amount, cash returned, cash left in the deal, and percentage of capital recycled. It then calculates post-refinance cash flow, DSCR, and cash-on-cash return on whatever capital remains in the deal.
Most BRRRR investors aim to recycle 80–100% of invested capital at refinance. Getting 100% back (infinite returns) requires buying at or below 75% of ARV minus rehab costs: (ARV × 0.75) − rehab = max purchase price. In a 7%+ interest rate environment, it's common to leave 10–20% of capital in the deal and still call it a successful BRRRR.
Cash left in the deal = Total cash invested − Cash returned at refinance. Total cash invested includes your purchase price, rehab budget, purchase closing costs, and holding costs during rehab. Cash returned = New loan amount − Refi closing costs. If cash returned exceeds total invested, you have pulled out all capital and have negative cash in the deal (true infinite return scenario).
Most conventional lenders allow 75% LTV on investment property cash-out refinances. Some portfolio lenders will go to 80%. The higher the LTV, the more capital you recover — but the larger the mortgage payment, which compresses post-refi cash flow. Most BRRRR investors model at 70–75% LTV to be conservative.
DSCR (Debt Service Coverage Ratio) measures whether your NOI covers the mortgage payment. Formula: NOI ÷ Annual Debt Service. A DSCR below 1.0 means the property loses money after the new mortgage. Most lenders require 1.15–1.25 to approve a DSCR loan. BRRRR deals often land at or just above 1.0 in high-rate environments, which is why stress-testing is critical.
BRRRR still works at 7%+, but the math changes. The strategy shifts from 'infinite returns with strong cash flow' to 'capital recycling with modest or break-even cash flow.' Focus on deals where you can buy at 65–70% of ARV (including rehab), rents are strong enough to support DSCR above 1.15 after the refi, and you have a margin of safety if ARV comes in 5–10% below your estimate.
The 70% rule says your total all-in cost (purchase + rehab) should not exceed 70–75% of ARV. This ensures enough equity for a 75% LTV refi to return all your capital. Formula: Max purchase price = (ARV × 0.75) − Rehab budget. Example: ARV $280K, rehab $45K → max purchase = ($280K × 0.75) − $45K = $165K. Buying above this price means some capital stays in the deal.
Explore other metrics with these focused investment tools.
The quick calculator handles the core BRRRR math. For sensitivity analysis on ARV, rehab overruns, rate changes, and a full 10-year projection, use the complete deal analyzer.