BRRRR Strategy Calculator: How to Run the Numbers Before You Buy

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is the most popular wealth-building strategy in rental property investing. When executed correctly, you can recycle the same capital across multiple properties — building both equity and cash flow with each cycle. But the math has to work before you buy.

The 5 Steps of BRRRR

1. Buy — Purchase a below-market property. Target 65-75% of After Repair Value (ARV).

2. Rehab — Renovate to increase value and rentability. Control costs tightly.

3. Rent — Place a tenant at market rent. The property needs to cash flow.

4. Refinance — After 6+ months of seasoning, refinance at the new appraised value (ARV). Pull out your initial investment.

5. Repeat — Use the refinance proceeds to do it again.

Real BRRRR Deal Example

Let’s walk through a real-world BRRRR deal in Dayton, Ohio:

Purchase price: $65,000 (distressed 3BR/1BA)

Rehab budget: $30,000 (new kitchen, bath, flooring, paint, HVAC)

Total invested: $95,000

After Repair Value (ARV): $135,000

Monthly rent: $1,100

Refinance at 75% LTV: $101,250 loan

Cash recovered: $101,250 − any remaining costs = you get back more than your $95,000 investment. That’s an infinite cash-on-cash return — you own a cash-flowing asset with zero money left in the deal.

The Numbers That Make or Break a BRRRR Deal

ARV accuracy is everything. Overestimate ARV by 10% and your refinance comes up short — leaving cash trapped in the deal. Always use conservative comps.

Rehab budget discipline. Over-renovating is the second biggest BRRRR killer. You’re renting, not selling. Focus on durability and functionality, not luxury finishes.

Post-refi cash flow. After refinancing at 75% LTV, the property still needs to cash flow. Run the DSCR — if it’s below 1.0 after refinance, the deal doesn’t work as a BRRRR.

Use becvio’s free BRRRR calculator to model these scenarios before you make an offer.