BRRRR Calculator
How to read the output
The mechanic of BRRRR is the capital recycle. The numbers that matter are:
Trapped equity — how much of your all-in basis stays in the deal after refinance. The closer to zero, the better. Anything above 15% of basis means BRRRR is producing a mediocre capital recycle.
DSCR — the rent-to-PITI ratio at projected rents. Below 1.10 the deal has no buffer for vacancy or rate shock. Below 1.0 the lender will not refinance at all.
Monthly cash flow — what hits your bank account after operating expenses and the new mortgage. Negative cash flow turns the BRRRR into a slow-bleed rental rather than a wealth machine.
For full BRRRR underwriting see /strategies/brrrr. For the financing side see hard money vs DSCR for BRRRR.
Frequently asked questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. A five-step real estate strategy where the operator buys distressed, rehabs to a rentable standard, leases it, refinances based on After Repair Value, and pulls equity back out to deploy into the next deal.
What is trapped equity in a BRRRR deal?
Trapped equity is the portion of your all-in basis that does not recycle at refinance. It happens when the lender's LTV cap or the appraised ARV limits the loan amount below what you have invested. A well-structured BRRRR keeps trapped equity under 15% of basis.
What DSCR do I need for a BRRRR refinance?
Most DSCR lenders require 1.0 minimum to qualify and 1.25+ for best pricing. DealIntel recommends underwriting BRRRR at a stress-tested 1.10 minimum so the deal survives a 10% rent shock or a 100 basis-point rate move. Deals that pass base case but fail under stress are common Kill List flags.
How much should I budget for carry on a BRRRR?
Typical BRRRR rehab runs 4–7 months. Hard money at 10–12% on a $360k loan costs roughly $3,000–$3,600 per month in interest. Budget 6 months minimum and add tax + insurance during the hold. Carry erosion of refinance proceeds is the most-missed cost in BRRRR underwriting.
Should I use this calculator or DealIntel for a real deal?
Use the calculator for back-of-envelope checks. Use DealIntel when you are about to make an offer — the platform runs the 25-point Kill List, stress-tests against +100 bps rate moves, compares BRRRR against five other strategies in parallel, and produces an institutional Investment Memorandum suitable for lenders and partners.