BRRRR Calculator
Buy, rehab, rent, refinance: see how much of your cash is still in the deal after the refinance, the cash-on-cash return on it, and the DSCR a lender will check.
What you pay for the property.
The renovation budget. Paid in cash unless you set a share financed in Advanced Options.
Assumed market rent once the rehab is done.
Your estimate of the value after the rehab, not an appraisal. The lender's appraisal decides the refinance.
The refinance loan as a share of the after-repair value. Investment cash-out refinances often top out at 70 to 75%.
Interest rate on the long-term refinance loan.
Assumed months you must own the property before the lender uses the after-repair value. Lender rules vary; Fannie Mae wants 12 months.
Purchase closing costs as a share of the price.
The short-term (bridge or hard-money) loan as a share of the price. 0 means all cash.
Share of the rehab the same lender funds. Assumed drawn at purchase.
Interest on the bridge loan, interest-only and paid monthly.
Upfront lender fee as a share of the whole bridge loan.
Months the property sits vacant while the work happens. Rent starts the month after.
Utilities and upkeep each month while the property is vacant.
Assumed share of the year the unit sits empty.
Property management fee, as a share of rent collected.
Repairs, as a share of scheduled rent.
Money set aside for big replacements (roof, HVAC), as a share of scheduled rent. Counted in cash flow, not as cash spent before the refinance.
Annual property tax.
Annual landlord insurance.
Monthly HOA dues, if any.
Length of the refinance loan.
Refinance closing costs as a share of the new loan.
Assumed minimum the lender accepts for rent divided by PITIA (principal, interest, taxes, insurance, HOA). Commonly 1.0 to 1.25; it varies.
After the refinance, $26,532 of your $81,132 is still in this deal. At these inputs the rent covers the new loan and expenses with $41 a month to spare.
Where the cash went
Rehab months 1 to 3, rented months 4 to 6, refinance at the end of month 6.
If the appraisal comes in 5% below your assumed after-repair value, cash left in the deal rises to $35,262.
First year after the refinance
| Line | Monthly | Yearly |
|---|---|---|
| Rent | $2,300 | $27,600 |
| Vacancy | −$184 | −$2,208 |
| Management | −$212 | −$2,539 |
| Maintenance | −$115 | −$1,380 |
| CapEx reserve | −$115 | −$1,380 |
| Property tax | −$250 | −$3,000 |
| Insurance | −$125 | −$1,500 |
| HOA | $0 | $0 |
| Net operating income | $1,299 | $15,593 |
| Loan payment (principal and interest) | −$1,259 | −$15,103 |
| Cash flow | $41 | $490 |
Coverage after all expenses (net operating income ÷ loan payments): 1.03. Cap rate on the after-repair value, before the capex reserve: 7.1%. Equity after the refinance: $60,000.
Assumptions
- The after-repair value is your assumption, not an appraisal. The lender's appraisal decides the refinance.
- Lender rules vary: seasoning, LTV, the minimum DSCR, and whether the loan is based on your cost or the after-repair value. Some lenders use your cost until you've owned the property 6 to 12 months.
- The bridge loan is interest-only, paid monthly, with no exit fee; financed rehab funds are drawn at purchase. The refinance pays off its principal.
- Rent starts the month after the rehab ends. Vacancy and expense percentages are assumed.
- The capex reserve is set aside, so it counts in cash flow but not as cash spent before the refinance.
- One stabilized year: no appreciation, rent growth, loan paydown, depreciation or income tax.
Deal figures are hypothetical and rest on the assumed after-repair value, rent and costs you enter. Appraisals, rates and lender rules vary, and actual results will vary. Educational estimates, not financial, tax or lending advice.
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