Interactive real estate analysis

BRRRR Calculator

Estimate refinance proceeds, equity and cash remaining in a rental.

What the BRRRR model measures

Buy, rehab, rent, refinance and repeat connects the renovation budget to the stabilized rental and refinance. The important outcomes are cash left invested, recurring cash flow and the debt remaining after refinance.

How to Use This Calculator

Build the acquisition, renovation and holding budget.
Estimate stabilized value using relevant comparable sales and rental income.
Enter refinance LTV, costs and the existing loan payoff.
Test a lower appraisal and a higher refinance rate.

Run Your Numbers

Enter your assumptions below. The calculator provides educational estimates; confirm inputs for your property and financing.

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Understand the numbers

Formulas and Assumptions

This guide explains the core calculation methods. The widget’s detailed assumptions and schedules govern its displayed results.

Project basis = purchase + rehab + acquisition costs + holding costs
Refinance loan = appraised value × refinance LTV
Net cash-out proceeds = refinance loan − existing loan payoff − refinance costs
Cash left in deal = cash invested before refinance − net cash-out proceeds
Equity after refinance = appraised value − refinance loan

How to Interpret the Results

LTV is loan-to-value as a decimal. Track cash contributions separately from borrowed project funds to avoid double counting loan payoffs. Lenders can limit cash-out using seasoning, cost basis and DSCR. A negative cash-left result means more cash was returned than contributed; it does not mean the property has no debt.

Use consistent time periods and enter percentages in the format requested by each field. Test conservative assumptions as well as your expected case. Estimates are not a lending commitment or individualized financial, legal or tax advice.

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Detailed calculator guide

Detailed Methodology and Model Assumptions

All-In Model Versus a Financed Acquisition

The embedded model starts with total purchase, rehab, closing and holding costs, then subtracts refinance proceeds net of refinance costs. It effectively tracks cash recovery against the all-in project basis.

If acquisition or rehab financing was used, reconcile cash contributions and loan payoffs separately. The simple all-in calculation is not a substitute for a sources-and-uses ledger. A cash-out amount cannot be treated as free equity.

Operating and Long-Term Projections

Monthly NOI = rent − taxes − insurance − vacancy − maintenance/CapEx − management − association dues. Cash flow = NOI − refinance payment. Cap rate is annual NOI divided by stabilized value, while cash-on-cash uses cash remaining after refinance.

The long-range projection grows rent and expenses using its selected assumptions, holds the modeled debt payment steady and projects property value from ARV. It omits sale costs and income taxes. Stress-test flat rent, a lower appraisal and an unexpected repair year.

Worked Example

Hypothetical illustration: these figures are separate from the live calculator inputs.

A project uses $80,000 of cash and $120,000 of acquisition debt. At a $240,000 appraisal and 75% LTV, the new loan is $180,000. After paying off $120,000 and $5,000 of refinance costs, cash returned is $55,000. Cash left invested is $25,000 and post-refinance equity is $60,000.

What makes a BRRRR workable?

A successful cash-out result still needs sustainable rent, repair reserves and affordable debt service. Recovering your initial cash does not eliminate property risk or leverage.

Rules of Thumb, and Their Limits

An appraisal is not guaranteed. Seasoning, cost-basis limitations and lender coverage rules can reduce proceeds below a simple LTV estimate.

Frequently Asked Questions

Does cash-out equal profit?

No. Refinance proceeds are borrowed funds secured by the property.

What if cash left is zero?

A cash-on-cash percentage has a zero denominator and should not be presented as an ordinary finite return.

Massachusetts and Property-Specific Considerations

Use the municipality’s actual assessed taxes and the property’s current insurance and association costs. Local rent evidence, building condition and the transaction’s legal use matter more than a statewide average. Review current lender or tax requirements where applicable.

Explore Massachusetts investment guides · Use the due diligence checklists · Compare other calculators

Refinance Appraisal Sensitivity

Hypothetical comparison
Appraised value	Loan at 75% LTV	Cash left invested
$240,000	$180,000	$25,000
$220,000	$165,000	$40,000
$200,000	$150,000	$55,000

Assume $80,000 cash contributed before refinance, a $120,000 loan payoff and $5,000 refinance costs. Lower appraisals leave more cash tied up. This table isolates valuation; a lower permitted LTV or lender cost-basis limit would change the result again.

Use the Comparison in Your Decision

Change one assumption at a time in the calculator, record the result and compare it with your base case. Then combine adverse assumptions to see whether the plan still fits your cash reserves and objectives. A useful scenario explains what must remain true for the transaction to work.