BRRRR Calculator

What this calculator is really testing

BRRRR only works if your capital comes back out. The calculator compares what you put in against what the refinance returns, because that difference decides whether you can go and do it again or whether your money is now parked in a rental for the next decade.

The two ceilings on your refinance

The refinance amount is capped by whichever of these two limits binds first.

1. The loan to value ceiling applied to the new appraised value, commonly around seventy five percent on a cash out
2. The debt service coverage ratio, because the new payment still has to be covered by the rent

A property can clear the loan to value test and fail the coverage test. That is why this calculator shows the DSCR alongside the capital returned. If the ratio drops below 1.00, the refinance will resize downward and less of your capital comes back than the loan to value math suggests.

Seasoning decides your capital velocity

Most programs require a seasoning period, commonly around six months of ownership, before lending against the new appraised value instead of your purchase price. Refinance too early and the lender values the property at what you paid, which strands your entire renovation budget in the deal.

Since the whole argument for BRRRR over buying and holding is how fast capital recycles, the seasoning requirement is a strategic input, not a technicality. Confirm it before you buy.

When the numbers say do not do it

• The after repair value is not far enough above total project cost to return your equity
• Stabilized rent produces a coverage ratio below what the refinance requires
• The renovation is too cosmetic to create the value lift the model depends on
• You need the capital back sooner than the seasoning period allows

See how the two loans fit together on the BRRRR financing page.