See how much cash comes back at the refinance, and what stays in the deal. BRRRR stands for buy, rehab, rent, refinance, repeat. The strategy works when the refinance returns most of your cash so you can buy the next property. The DealWorthIQ BRRRR calculator models the whole cycle and shows what actually limits the new loan: the lender's loan-to-value cap or the rent's ability to cover the payment.
Formulas behind the BRRRR Calculator
All-in project cost: Purchase + closing costs + points + rehab (with contingency) + interest and holding costs until the refinance. This is what the property costs you by the day you refinance.
Stabilized NOI: Annual rent + other income − vacancy − operating expenses (including management). Net operating income once the property is rented. Debt payments are not operating expenses.
LTV loan cap: Max LTV % × valuation basis. The basis is either the ARV or, more conservatively, the lower of your all-in cost and the ARV. Many lenders lend on cost until you have owned the property 6 to 12 months.
DSCR loan cap: Largest loan whose annual payment ≤ NOI ÷ minimum DSCR. Lenders want the rent to cover the payment with room to spare, often 1.2× or more. If rents are modest, this cap is lower than the LTV cap.
Cash out at refinance: New loan − payoff of the purchase loan − refinance closing costs. The new loan is the lower of the LTV cap and the DSCR cap.
Cash left in the deal: Total cash you put in − cash out at refinance. The lower this number, the faster you can repeat the strategy. Zero means you got all your money back.
Cash-on-cash return: (NOI − annual payment on the new loan) ÷ cash left in the deal. The yearly return on the money that is still tied up in the property.
Frequently asked questions
How do you calculate a BRRRR deal?
Add up the all-in cost through the refinance, estimate the stabilized NOI from rent and expenses, then size the new loan as the lower of the lender's LTV cap and the DSCR cap. Cash out is the new loan minus the payoff of the purchase loan and refinance costs, and cash left in the deal is what you invested minus that cash out.
Why is my refinance loan smaller than 75% of the ARV?
Two common reasons: the lender is lending on your cost instead of the ARV because you have not owned the property long enough, or the rent is not high enough to support a bigger payment at the lender's minimum DSCR. The calculator shows which one is limiting the loan.
What is a good BRRRR deal?
The best BRRRR deals return most or all of your cash at the refinance and still cash flow afterward. Investors often look for a DSCR of at least 1.2 after the refinance and positive monthly cash flow with realistic vacancy and repair reserves.
Does the calculator compare refinance scenarios?
Yes. It compares a conservative refinance based on the lower of your cost and the ARV with an appraisal-based refinance on the full ARV, so you can see how much seasoning is worth.