BRRRR & ARV Calculator

Buy, Rehab, Rent, Refinance, Repeat. The strategy lets investors build a rental portfolio without continuously deploying new capital. You purchase a distressed property, renovate it to force appreciation, rent it for stable cash flow, then do a cash-out refinance based on the higher after-repair value (ARV) to recover your original investment and fund the next deal.

After stabilizing the rental, you do a cash-out refinance based on the after-repair value (ARV). Lenders typically lend 70-75% of ARV. If your ARV is $250,000 and you refinance at 75% LTV, you pull out $187,500. If your all-in cost was $180,000, you recover all of it. The new permanent loan replaces any bridge financing used to buy and rehab the property.

Cash left in = (purchase price + rehab costs) minus the refinance loan proceeds. The goal is zero or minimal cash left in, sometimes called an "infinite return" because your equity earns returns on $0 invested. If you pull out more than you put in, you have technically been paid to own the asset. The calculator shows capital recovered as a percentage and highlights whether you cleared zero.

The refinance appraisal coming in below expected ARV is the most common pitfall, as it shrinks the loan and leaves your capital stranded. Rising interest rates can make refinancing expensive and reduce cash flow on the stabilized loan. Rehab budgets frequently run over; always build in at least 20% contingency. Properties can also take longer to stabilize, extending your carry costs. This is an estimate, not investment advice.