BRRRR Calculator

How this calculator works

The BRRRR goal is to get most or all of your cash back out at the refinance. That depends on the appraisal, the lender's cash-out loan-to-value, any seasoning rule that limits the loan to your cost, and the rent supporting the new payment.

New loan = appraised value × refinance LTV (or your cost × a cost-basis limit, if the lender applies one).
Net refinance proceeds = new loan − short-term loan payoff − refinance costs.
Cash left in deal = cash invested − net proceeds.

Worked example

Example values are illustrative, not quotes or market data. These are the numbers the calculator above starts with.

Inputs

Purchase price: $150,000
Rehab cost: $40,000
Buying closing costs: $3,000
Holding costs until refinance: $4,000
Initial financing: All cash
Appraised value after repairs: $260,000
Cash-out refinance LTV: 75%
Refinance rate: 7.5%
Refinance length: 30 years
Refinance points: 1%
Refinance closing costs: $3,500
Monthly rent: $2,000
Vacancy: 5%
Property taxes per year: $4,500
Insurance per year: $1,600
Management: 8%
Maintenance (% of rent): 5%
Capital reserves (% of rent): 5%

Results

Cash invested: $197,000
New loan: $195,000
Cash left in deal: $7,450
Monthly cash flow: -$324

Common questions

What is a seasoning requirement?

Some lenders limit a cash-out refinance to your purchase and rehab cost, or will not refinance at all, until you have owned the property for a period. Ask before you buy.

What if the appraisal comes in low?

The new loan and your cash back drop. Run a lower value as a second scenario.

Can I use a DSCR loan to refinance?

Often, yes. Use the DSCR calculator to check the rent supports the new loan.

Related calculators

Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.