BRRRR Method Calculator 2026
The ultimate strategy for scaling a rental portfolio. Calculate your Buy, Rehab, and Refinance numbers to maximize your 'Cash Out' potential.
Last updated: May 2026
Total Cash Invested
Refinance Cash Out
Cash Left in Deal
The Goal: Pull out 100% of your initial investment during the refinance stage so you can repeat the process with the same capital.
What is the BRRRR Method?
The BRRRR method stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investment strategy that focuses on buying distressed properties, forced appreciation through renovation, and then refinancing to pull your initial capital back out.
In 2026, as interest rates and property prices fluctuate, the BRRRR strategy remains the most effective way to build a large portfolio without needing millions of dollars in personal capital for every new deal. If done correctly, you can achieve an Infinite ROI by having zero of your own dollars left in the deal while still owning the cash-flowing asset.
How to use this calculator
- 1Buy & Rehab — Input your purchase price and the total estimated cost for renovations and repairs.
- 2Estimate ARV — Determine the 'After Repair Value'—what the property will be worth once the rehab is complete.
- 3Set Refinance LTV — Enter the Loan-to-Value percentage your bank allows (typically 75% to 80% for investment properties).
- 4Analyze Cash Left — Check if the refinance amount covers your initial costs. The lower the 'Cash Left', the better the deal.
Formula & example
Cash Left = (Purchase + Rehab) - (ARV × LTV%)
Example: Buy for $150k + Rehab $50k ($200k Total). ARV is $300k.
- Total Invested: $200,000
- Refinance (75% of $300k): $225,000
- Cash Pulled Out: $225k - $200k = $25k Profit + The House!
Benefits
Velocity of Money
Reuse the same initial capital multiple times to buy multiple properties.
Forced Appreciation
Create equity through renovations instead of waiting for market growth.
Infinite Returns
Achieve infinite cash-on-cash ROI once all your initial capital is recovered.
Use cases
Portfolio Builders
Investors looking to scale quickly to 10+ units using limited personal savings.
Fix-and-Flippers
Investors transitioning from selling properties to keeping them as long-term rentals.
House Hackers
Owner-occupants using the BRRRR method to live for free and build equity.
Frequently asked questions
What is the biggest risk in BRRRR?+
Underestimating rehab costs or overestimating the ARV. If the property appraises for less than expected, you won't be able to pull all your cash out.
Does this include closing costs?+
You should include purchase closing costs in your 'Purchase' price and refinance closing costs in your 'Rehab' budget for a more accurate result.
How long is the 'seasoning period'?+
Most lenders require you to own the property for 6-12 months before they will refinance based on the new ARV instead of the purchase price.