BRRRR Calculator
Two questions decide a BRRRR: how much capital returns at refinance, and whether the rent still carries the new loan.
What This Calculator Does
The complete buy, rehab, rent, refinance, repeat cycle runs here: total cash in through purchase and renovation, the loan the post-rehab appraisal supports, the capital returned at refinance, and the cash flow and return on whatever remains in the deal.
Who Is This For
Designed 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 spreadsheet from a seminar.
How It Works
Supply the purchase price, rehab budget, and expected value once the work is finished, followed by the refinance terms and the rent the completed property commands. The calculator shows how much cash returns, how much stays invested, and what the property yields on it.
Frequently Asked Questions
What do the five letters stand for?
Buy, rehab, rent, refinance, repeat. You purchase a property needing work, renovate it, place a tenant, refinance against the improved value, and direct the returned capital toward the next one.
How much comes back at refinance?
Investor cash-out programs typically cap at 70-75% of appraised value. The new loan retires the acquisition and rehab debt, and whatever remains after costs is the capital you recover. Should the appraisal come in low, the shortfall stays as your money inside the deal.
What does infinite return really describe?
It describes the case where the refinance returns every dollar you put in, leaving none of your own capital invested. Any cash flow beyond that is a return on zero, which is where the phrase originates. It requires a value lift large enough to clear the loan cap, and it is the exception rather than the plan.
Is a seasoning period required?
Most lenders require the property to be held for a set period before they will lend against the new appraised value instead of 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 loan?
That is the test people skip. The new loan exceeds the old one, so the payment rises while the rent stays where the market puts it. Run the post-refinance cash flow with taxes, insurance, and association dues included before deciding how much to pull out.
Does BRRRR suit Miami?
It works wherever you can create value an appraiser will recognize, which is harder inside condo buildings with rules on renovations and easier in single-family pockets holding dated housing stock. Insurance and association costs weigh more heavily here as well, so the cash flow test after refinancing counts for more than the equity story.