This shows how much of your own cash a BRRRR deal gives back at the refinance and whether the rent then covers the new loan; the appraised after-repair value matters most, because it sets the size of the refinance loan.
Short answer: the BRRRR method buys a fixer with a short-term rehab loan, rents it out, then refinances into a long-term DSCR loan to pull your cash back out. This calculator sizes both loans and shows the cash left in the deal after the refinance, the new PITIA, the DSCR, monthly cash flow and cash-on-cash return.
Run your BRRRR numbers
Results update as you type. The defaults are a $200,000 purchase with a $50,000 rehab, a $320,000 after-repair value and $2,800 a month in rent, with example rates of 10.5% on the short-term loan and 7.5% on the refinance.
1. Buy
2. Rehab
Short-term (rehab) loan
3. Rent
4. Refinance (DSCR cash-out)
Typical ranges for business-purpose investor lending. Leverage, rates, fees and seasoning rules vary by lender, credit, experience and property.
How the BRRRR calculator works
BRRRR stands for buy, rehab, rent, refinance, repeat. Two loans do the work. A short-term rehab loan (often called a fix-and-flip or bridge loan) buys the house and pays for the renovation. Once the work is done and a tenant is in place, a long-term DSCR loan refinances the property at its new appraised value and pays off the short-term loan. If the new value is high enough, most of the cash you put in comes back, and you repeat with the next house.
- Short-term loan = the lower of (purchase × purchase % + rehab × rehab %) and (ARV × ARV %). If the ARV cap cuts the loan, the cut comes out of the rehab funding first, the same way as in the fix and flip calculator.
- Cash needed at purchase = down payment + purchase closing costs + points. Total cash invested = cash at purchase + any rehab you fund + interest-only payments on the full loan for the months held.
- Total project cost = purchase price + purchase closing costs + rehab + points + holding interest + refinance closing costs.
- Refinance loan = appraised value × refinance LTV. Cash returned = refinance loan − refinance closing costs − payoff of the short-term loan.
- Cash left in the deal = total cash invested − cash returned, which always equals total project cost − refinance loan. At zero or below, the calculator shows "all cash out".
- PITIA = principal and interest on a 30-year loan + taxes + insurance + HOA. DSCR = monthly rent ÷ PITIA, compared with 1.00 and 1.25.
- Cash flow = rent − vacancy − maintenance − management − PITIA. Cash-on-cash return = annual cash flow ÷ cash left in the deal; with no cash left in, the return is infinite.
Lenders usually figure DSCR on gross rent; vacancy, maintenance and management only affect your own cash flow. See DSCR loans for how lenders count rent.
Worked example: the default deal
A $200,000 purchase with $4,000 of closing costs, a $50,000 rehab, a $320,000 after-repair value and $2,800 a month in rent. The short-term loan funds 90% of the price and 100% of the rehab, capped at 75% of ARV, with 2 points at an example 10.5% for six months. The refinance is 75% LTV at an example 7.5% over 30 years. Illustrative assumptions, not a quote.
| Purchase advance: 90% × $200,000 | $180,000 |
| Rehab funding: 100% × $50,000 | $50,000 |
| ARV limit: 75% × $320,000 = $240,000, so the $230,000 cost-based limit binds | $230,000 |
| Cash at purchase: $20,000 down + $4,000 closing + $4,600 points (2%) | $28,600 |
| Holding interest: $230,000 × 10.5% ÷ 12 = $2,012.50 × 6 months | $12,075 |
| Total cash invested: $28,600 + $0 rehab out of pocket + $12,075 | $40,675 |
| Total project cost: $200,000 + $4,000 + $50,000 + $4,600 + $12,075 + $6,000 refinance costs | $276,675 |
| Refinance loan: 75% × $320,000 | $240,000 |
| Cash returned: $240,000 − $6,000 refinance costs − $230,000 payoff | $4,000 |
| Cash left in the deal: $40,675 − $4,000 (= $276,675 − $240,000) | $36,675 |
| Equity after refinance: $320,000 − $240,000 | $80,000 |
| New PITIA: $1,678.11 P&I + $300 taxes + $125 insurance | $2,103.11 |
| DSCR: $2,800 ÷ $2,103.11 (above 1.25) | 1.33 |
| Monthly cash flow: $2,800 − $140 vacancy − $140 maintenance − $224 management − $2,103.11 | $192.89 |
| Annual cash flow: $192.89 × 12 | $2,315 |
| Cash-on-cash return: $2,315 ÷ $36,675 | 6.3% |
The deal works as a rental, but it is not a full BRRRR: $36,675 stays in the property. To get all of it back, the appraisal would have to come in near $369,000 at 75% LTV ($276,675 ÷ 75% = $368,900).
What changes the result
The refinance LTV
At 80% LTV instead of 75%, the refinance loan is $256,000, cash returned rises to $20,000 and cash left falls to $20,675. The bigger loan raises PITIA to $2,214.99, so DSCR drops to 1.26 and cash flow to about $81 a month (4.7% cash-on-cash). More cash out usually means thinner cash flow.
The appraisal
If the house appraises at $300,000 instead of $320,000, both loans shrink. The 75% ARV cap ($225,000) now binds the short-term loan, so you fund $5,000 of the rehab. At the refinance, 75% × $300,000 = $225,000 does not cover the $225,000 payoff plus $6,000 of costs, so you bring $6,000 to closing and $51,313 stays in the deal.
Seasoning
Tick the seasoning box to see the case where the lender limits the value to purchase price plus rehab ($250,000). The refinance loan falls to $187,500, you bring $48,500 to pay off the short-term loan, and $89,175 stays in the deal. Waiting until the value is accepted, or finding a program that uses the new appraised value, can be worth tens of thousands of dollars.
Time and rate
Every extra month on the short-term loan costs $2,012.50 of interest in this example, and every month adds to the cash left in. The refinance rate moves PITIA, DSCR and cash flow, but not the cash you get back.
Want both loans lined up before you buy?
Share the price, rehab budget, expected rent and value. LoanFight reviews the scenario and connects you with lending partners for the rehab loan and the DSCR refinance.
Tell Us About Your Deal →Typical loan terms for a BRRRR (2026)
| Item | Typical range (varies by lender) |
|---|---|
| Short-term loan: purchase | Commonly about 85–90% of the price for experienced investors; often less for a first project |
| Short-term loan: rehab | Commonly up to 100% of the approved budget, held back and paid in draws |
| Short-term loan: ARV cap | Total loan commonly capped at about 70–75% of after-repair value |
| Short-term loan: structure | Interest-only, commonly 6–18 months, with 1–3 origination points |
| DSCR cash-out refinance | Commonly about 75% LTV; select programs reach 80% cash-out with 720+ credit on loans up to about $1.5 million |
| DSCR refinance terms | 30- or 40-year fixed, 7/6 and 10/6 ARMs, interest-only options on select programs |
| First-time investor | Select DSCR programs accept first-time investors with about 680+ credit |
| Value seasoning | Owned less than about six months and asking for more than about 75% LTV: value is commonly limited to purchase price plus documented improvements; select programs use the new appraised value sooner |
Typical ranges among business-purpose investor lenders, not one lender's guidelines and not a LoanFight offer. Credit, DSCR, loan size, property type, state and full underwriting decide the actual terms.
Seasoning and appraisal risk
The BRRRR plan rests on one number you do not control: the appraised value at the refinance. A cautious appraisal, a lender that uses cost instead of value because you have owned the home only a few months, or a rent estimate below your lease can each leave far more cash in the deal than planned, or require cash to pay off the short-term loan. Before you buy, ask the refinance lender how it treats recently purchased properties, which value it will use and how it counts rent, and leave room in your budget for a lower appraisal and a few extra months of interest. The DSCR cash-out refinance guide covers seasoning and value policies in detail.
BRRRR calculator FAQs
What is the BRRRR method?
BRRRR stands for buy, rehab, rent, refinance, repeat. You buy a property that needs work, usually with a short-term rehab loan, renovate it, rent it out, then refinance into a long-term rental loan at the new value to pay off the short-term loan and recover cash for the next deal.
How much cash will I leave in a BRRRR deal?
Cash left in equals your total project cost minus the refinance loan. In the default example, $276,675 of cost and a $240,000 refinance leave $36,675 in the deal. You get everything back only if the refinance loan covers the price, rehab, points, interest and both sets of closing costs.
How much can I cash out on a BRRRR refinance?
DSCR cash-out refinances commonly go to about 75% of the appraised value. Select programs reach 80% with 720+ credit on loans up to about $1.5 million. Lower scores, larger loans and lower DSCRs usually mean less. It varies by lender.
How soon can I refinance after buying?
It depends on the lender. If you have owned the property less than about six months and want more than about 75% LTV, many programs value it at purchase price plus documented rehab instead of the new appraisal. Select programs use the new appraised value sooner. Ask before you buy.
What DSCR do I need for the refinance?
DSCR is monthly rent divided by PITIA. Many programs want at least 1.00, meaning the rent covers the payment, and the best pricing often starts around 1.20 to 1.25. Some programs allow a DSCR below 1.00 at lower leverage.
Why does the calculator show an infinite cash-on-cash return?
Cash-on-cash return divides annual cash flow by the cash left in the deal. When the refinance returns all of your cash, nothing is left in, so the ratio has no meaning and the calculator shows it as infinite. The property still carries a larger loan and real risk.
Does LoanFight make BRRRR loans?
No. LoanFight is not a lender. We review your scenario and connect you with lending partners for the short-term rehab loan and the DSCR refinance. The partners set the actual terms.
Sources
- CFPB: Regulation Z, 12 CFR 1026.3(a) — credit extended primarily for a business purpose is exempt from most consumer mortgage rules.
- CFPB: Official interpretation of §1026.3 — how non-owner-occupied rental and investment property is treated.
- OCC: Comptroller's Handbook, Commercial Real Estate Lending — how lenders use debt service coverage, loan-to-value and appraisals on income property.
Educational estimate only. LoanFight is not a lender, does not make credit decisions and does not set loan terms. The default rates, points and limits are illustrations of common ranges, not a quote. Your lending partners will provide the actual terms.