A powerful strategy to recycle your capital and grow a portfolio faster. We explain each step and show you a real‑world example.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a method to acquire rental properties with little of your own money permanently tied up. You buy a distressed property, fix it up, rent it out, then refinance based on the new value to pull your cash out – and do it again.
Find a property below market value – often a fixer‑upper. Use cash, hard money, or a creative financing to acquire it quickly.
Renovate to increase the property's value. Focus on cost‑effective improvements that boost rent and appraisal.
Place a tenant to generate rental income. The property should now cash flow at market rents.
Get a new mortgage based on the after‑repair value (ARV). Pull out cash to repay your initial investment (and possibly more).
Use the recycled cash to buy your next property. Build a portfolio with the same capital.
The magic is in the refinance. If you buy at $100k, put $30k into rehab, and the ARV is $180k, you can often refinance at 75% LTV ($135k). That pays off your original loan and rehab costs, leaving you with little to no money left in the deal – plus a cash‑flowing property.
Example: Purchase $100k (20% down = $20k), rehab $30k, ARV $180k. Refinance at 75% = $135k. Pay off original loan ($80k) + recoup rehab ($30k) = $110k, leaving $25k cash out. You get all your $50k back + $25k extra, and still own the property! (Numbers simplified; actual closing costs apply.)
Enter your numbers to see if a BRRRR deal works and how much cash you can recycle.
Adjust the values and click the button.
This calculator estimates the outcome of a BRRRR deal. Actual results depend on many factors including appraisal, lender requirements, and market conditions. Always run numbers with a professional.