BRRRR Calculator
Two questions decide a BRRRR: how much capital returns, and whether the rent still covers the larger loan.
What This Calculator Does
Follows the full buy, rehab, rent, refinance, repeat cycle — total cash committed through purchase and renovation, the loan the post-rehab appraisal will support, the capital handed back at refinance, and the cash flow and return on whatever remains in the deal.
Who Is This For
Investors building a rental portfolio without fresh capital for every purchase, owners of a renovated property choosing between refinancing and selling, and anyone testing the BRRRR strategy against real Miami costs rather than a seminar spreadsheet.
How It Works
Enter the purchase price, the rehab budget, and the value expected once work is finished, followed by the refinance terms and the rent the completed property commands. The output shows the cash returned, the amount still invested, and the yield on it.
Frequently Asked Questions
What do the letters stand for?
Buy, rehab, rent, refinance, repeat. Acquire a property needing work, renovate it, place a tenant, refinance against the improved value, and direct the returned capital into the next purchase.
How much comes back at refinance?
Investor cash-out programs typically stop at 70-75% of appraised value. The new loan clears the acquisition and rehab debt, and whatever survives the costs is your recovered capital. Should the appraisal disappoint, the shortfall is your money staying in the deal.
What does infinite return really describe?
The case where the refinance hands back every dollar you contributed, leaving none of your own capital in the property. Cash flow after that is a return on zero, hence the phrase. It requires a value lift large enough to clear the loan cap, and it is the exception rather than the plan.
Is there a seasoning requirement?
Most lenders want the property held for a set period before they will lend against the new appraised value rather than your purchase price. The requirement varies by program, so confirm it before budgeting on the improved value — it determines when your capital genuinely returns.
Will the rent still cover the new payment?
This is the test people skip. The new loan is larger than the old one, so the payment rises while the rent stays where the market puts it. Run post-refinance cash flow with taxes, insurance, and association dues included before deciding how much to pull out.
Does BRRRR suit Miami?
It works where value can be created that an appraiser will recognise — harder inside condo buildings with renovation rules, easier in single-family pockets with dated stock. Insurance and association costs bite harder here too, so the post-refinance cash flow test matters more than the equity story.