{"id":1034,"date":"2026-09-01T00:12:19","date_gmt":"2026-09-01T04:12:19","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/"},"modified":"2026-09-02T08:42:14","modified_gmt":"2026-09-02T12:42:14","slug":"brrrr-calculator-how-to-use","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/","title":{"rendered":"BRRRR Calculator: How to Analyze Buy-Rehab-Rent-Refinance Deals (2026)"},"content":{"rendered":"<p>The <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a> models every stage of the Buy-Rehab-Rent-Refinance-Repeat strategy in one analysis \u2014 from acquisition cost through cash-out refinance proceeds. On a $120K Cleveland SFR with $30K rehab that appraises at $190K, the BRRRR calculator shows you recover 94% of your capital on the refinance, leaving only $9,300 in the deal while generating +$145\/month cash flow. Here is how to use every input and output to evaluate BRRRR deals before committing capital.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"900\" height=\"506\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/brrrr-calculator-how-to-use-guide.jpg\" alt=\"brrrr calculator guide \u2014 investment analysis with worked examples and data 2026\" class=\"wp-image-1035\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/brrrr-calculator-how-to-use-guide.jpg 1672w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/brrrr-calculator-how-to-use-guide-300x169.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/brrrr-calculator-how-to-use-guide-1024x576.jpg 1024w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/brrrr-calculator-how-to-use-guide-768x432.jpg 768w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/09\/brrrr-calculator-how-to-use-guide-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#What_the_BRRRR_Calculator_Does\" >What the BRRRR Calculator Does<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#How_to_Use_the_BRRRR_Calculator_Step_by_Step\" >How to Use the BRRRR Calculator: Step by Step<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Step_1_Enter_Acquisition_Costs\" >Step 1: Enter Acquisition Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Step_2_Enter_Rehab_Details\" >Step 2: Enter Rehab Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Step_3_Enter_Post-Rehab_Rental_Details\" >Step 3: Enter Post-Rehab Rental Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Step_4_Enter_Refinance_Parameters\" >Step 4: Enter Refinance Parameters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Step_5_Read_the_Results\" >Step 5: Read the Results<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Worked_Example_Cleveland_SFR_BRRRR\" >Worked Example: Cleveland SFR BRRRR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Worked_Example_Indianapolis_Duplex_BRRRR\" >Worked Example: Indianapolis Duplex BRRRR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#BRRRR_Calculator_vs_Other_Calculators\" >BRRRR Calculator vs Other Calculators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#5_Mistakes_When_Using_the_BRRRR_Calculator\" >5 Mistakes When Using the BRRRR Calculator<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#1_Overestimating_ARV\" >1. Overestimating ARV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#2_Forgetting_Holding_Costs\" >2. Forgetting Holding Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#3_Using_Pre-2022_Rate_Assumptions\" >3. Using Pre-2022 Rate Assumptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#4_Targeting_100_Capital_Recovery_at_Any_Cost\" >4. Targeting 100% Capital Recovery at Any Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#5_Not_Checking_DSCR_Before_Refinancing\" >5. Not Checking DSCR Before Refinancing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Does_BRRRR_still_work_in_2026_with_high_interest_rates\" >Does BRRRR still work in 2026 with high interest rates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#What_is_a_good_capital_recovery_percentage_for_BRRRR\" >What is a good capital recovery percentage for BRRRR?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#How_long_should_I_hold_before_refinancing_in_a_BRRRR\" >How long should I hold before refinancing in a BRRRR?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Should_I_use_hard_money_or_cash_for_BRRRR\" >Should I use hard money or cash for BRRRR?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#What_is_the_difference_between_BRRRR_calculator_and_rental_property_calculator\" >What is the difference between BRRRR calculator and rental property calculator?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/brrrr-calculator-how-to-use\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_the_BRRRR_Calculator_Does\"><\/span>What the BRRRR Calculator Does<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The BRRRR strategy has five phases, and the BRRRR calculator models all of them:<\/p>\n<ol>\n<li><strong>Buy<\/strong> \u2014 purchase price, closing costs, down payment or cash purchase<\/li>\n<li><strong>Rehab<\/strong> \u2014 renovation budget, holding costs during rehab (hard money interest, insurance, utilities)<\/li>\n<li><strong>Rent<\/strong> \u2014 post-rehab monthly rent, operating expenses, cash flow projection<\/li>\n<li><strong>Refinance<\/strong> \u2014 after-repair value (ARV), LTV ratio, new loan amount, cash-out proceeds<\/li>\n<li><strong>Repeat<\/strong> \u2014 capital remaining in deal, cash-on-cash return, total ROI<\/li>\n<\/ol>\n<p>The key number is <strong>capital recovery<\/strong> \u2014 how much of your invested cash you get back on the refinance. The BRRRR calculator shows this as a dollar amount and percentage. 90%+ recovery means you can repeat the strategy almost indefinitely with the same pool of capital.<\/p>\n<p>For the general BRRRR strategy overview, see our <a href=\"\/blog\/brrrr-strategy-guide\/\">BRRRR strategy guide<\/a>. For the refinance math specifically, use the <a href=\"\/brrrr-refinance-calculator\">BRRRR refinance calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Use_the_BRRRR_Calculator_Step_by_Step\"><\/span>How to Use the BRRRR Calculator: Step by Step<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Enter_Acquisition_Costs\"><\/span>Step 1: Enter Acquisition Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Purchase price<\/strong> \u2014 what you pay for the property. BRRRR investors target distressed properties at 60-75% of ARV. A property worth $190K after rehab should be purchased at $115K-$140K.<\/p>\n<p><strong>Closing costs<\/strong> \u2014 buyer closing costs at purchase (2-4% of purchase price). Include title insurance, attorney fees, inspection, and recording fees. Estimate in the <a href=\"\/closing-costs-calculator\">closing costs calculator<\/a>.<\/p>\n<p><strong>Financing type<\/strong> \u2014 cash, hard money, or conventional. Most BRRRR investors use hard money for the acquisition phase because conventional lenders will not finance distressed properties. Hard money rates: 10-14% with 2-4 points. Model costs in the <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Enter_Rehab_Details\"><\/span>Step 2: Enter Rehab Details<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Rehab budget<\/strong> \u2014 total renovation cost. Be conservative \u2014 add 15-20% contingency. A $30K rehab budget should be entered as $34K-$36K to account for surprises. See our <a href=\"\/blog\/cost-to-rehab-a-house\/\">cost to rehab guide<\/a> for room-by-room estimates.<\/p>\n<p><strong>Rehab timeline<\/strong> \u2014 months from purchase to rent-ready. Typical BRRRR rehab: 2-4 months for cosmetic, 4-6 months for structural. This determines your hard money holding costs.<\/p>\n<p><strong>Holding costs during rehab<\/strong> \u2014 hard money interest, insurance, property taxes, utilities during renovation. On a $150K hard money loan at 12%: $1,500\/month interest alone. Four months of holding = $6,000+ before you collect a single dollar of rent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Enter_Post-Rehab_Rental_Details\"><\/span>Step 3: Enter Post-Rehab Rental Details<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Monthly rent<\/strong> \u2014 expected rent after renovation at the ARV condition. Pull comps for renovated properties in your area, not distressed ones. See our <a href=\"\/blog\/how-much-can-i-rent-my-house-for\/\">rent estimation guide<\/a>.<\/p>\n<p><strong>Operating expenses<\/strong> \u2014 property taxes, insurance, vacancy (5-8%), maintenance (5-8% for newly rehabbed), management (8-10%), and CapEx reserves (3-5%). Newly rehabbed properties have lower maintenance initially, but budget conservatively for the BRRRR calculator to show realistic long-term cash flow.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_Enter_Refinance_Parameters\"><\/span>Step 4: Enter Refinance Parameters<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This is the most critical section of the BRRRR calculator:<\/p>\n<p><strong>After-Repair Value (ARV)<\/strong> \u2014 what the property is worth after renovation. Get this from comps of recently sold renovated properties within 0.5 mile. Be conservative \u2014 if your ARV is wrong, your entire BRRRR analysis falls apart. Estimate in the <a href=\"\/arv-calculator\">ARV calculator<\/a>.<\/p>\n<p><strong>LTV ratio<\/strong> \u2014 what percentage of ARV the lender will finance. Cash-out refinance: 70-75% LTV typical. Rate-and-term: up to 80%. DSCR lenders: 75-80% cash-out. The BRRRR calculator uses this to compute your new loan amount. Model LTV scenarios in the <a href=\"\/ltv-calculator\">LTV calculator<\/a>.<\/p>\n<p><strong>Refinance rate<\/strong> \u2014 your new long-term mortgage rate. Currently 6.5-7.5% for conventional investment loans, 7.0-8.5% for DSCR. Check <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" target=\"_blank\" rel=\"noopener noreferrer\">FRED<\/a> for current rates.<\/p>\n<p><strong>Refinance closing costs<\/strong> \u2014 1.5-2.5% of new loan amount. Includes appraisal ($400-$600), title insurance, origination fees, and recording fees.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_5_Read_the_Results\"><\/span>Step 5: Read the Results<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The BRRRR calculator shows:<\/p>\n<ul>\n<li><strong>Total Capital Invested<\/strong> \u2014 all cash you put in (purchase + closing + rehab + holding costs)<\/li>\n<li><strong>Cash-Out Refinance Proceeds<\/strong> \u2014 new loan amount minus refi closing costs<\/li>\n<li><strong>Capital Recovery %<\/strong> \u2014 proceeds \u00f7 total invested. Target: 90%+. At 100%, you pulled ALL cash out. Above 100% = you made money on the refinance.<\/li>\n<li><strong>Capital Left in Deal<\/strong> \u2014 total invested minus cash-out proceeds. This is your real equity position.<\/li>\n<li><strong>Monthly Cash Flow<\/strong> \u2014 rent minus expenses minus new mortgage payment<\/li>\n<li><strong>Cash-on-Cash Return<\/strong> \u2014 annual cash flow \u00f7 capital left in deal. With only $9,300 left, even $145\/month CF = 18.7% CoC \u2014 far better than traditional buy-and-hold.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_Cleveland_SFR_BRRRR\"><\/span>Worked Example: Cleveland SFR BRRRR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Property:<\/strong> 3-bed\/1-bath SFR in Cleveland Heights. Distressed, needs full cosmetic rehab.<\/p>\n<pre><code>ACQUISITION:\n  Purchase Price:        $120,000 (cash)\n  Closing Costs:          $3,600 (3%)\n  Total Acquisition:    $123,600\n\nREHAB:\n  Renovation Budget:     $30,000\n  Contingency (15%):      $4,500\n  Holding Costs (3 mo):   $2,400 (insurance, taxes, utilities)\n  Total Rehab Phase:     $36,900\n\nTOTAL CAPITAL INVESTED: $160,500\n\nPOST-REHAB RENTAL:\n  ARV:                  $190,000\n  Monthly Rent:          $1,450\n  Expenses (taxes, ins, vac, maint, mgmt): $625\/mo\n  NOI:                    $825\/mo\n\nREFINANCE (75% LTV):\n  New Loan:             $142,500 ($190K \u00d7 75%)\n  Refi Closing Costs:     $2,850 (2%)\n  Cash-Out Proceeds:    $139,650\n\nRESULTS:\n  Capital Recovery:      $139,650 \/ $160,500 = 87%\n  Capital Left in Deal:   $20,850\n  Monthly Mortgage (6.75%, 30yr): $924\n  Monthly Cash Flow:      $825 - $924 = -$99\/month\n\n  PROBLEM: Cash flow is NEGATIVE at 75% LTV and 6.75% rate.<\/code><\/pre>\n<p><strong>This is reality in 2026.<\/strong> At current rates (6.75%+), many BRRRR deals that worked at 4-5% rates in 2020-2021 are now cash flow negative after refinance. The BRRRR calculator shows this clearly \u2014 no guessing.<\/p>\n<p><strong>Fix options the BRRRR calculator helps you model:<\/strong><\/p>\n<ul>\n<li>Lower purchase price to $110K \u2192 capital recovery 95%, CF still -$50<\/li>\n<li>Reduce LTV to 70% \u2192 CF +$5\/month but only recover 80% of capital<\/li>\n<li>Higher rent ($1,550) \u2192 CF +$1\/month at 75% LTV<\/li>\n<li>Self-manage (save 10% PM) \u2192 CF +$46\/month<\/li>\n<\/ul>\n<p>The honest answer: this Cleveland BRRRR is marginal at current rates. It builds equity ($20,850 day-1 equity) but requires either self-management or lower LTV to cash flow. Compare to a traditional purchase in the <a href=\"\/rental-property-calculator\">rental property calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_Indianapolis_Duplex_BRRRR\"><\/span>Worked Example: Indianapolis Duplex BRRRR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<pre><code>ACQUISITION:\n  Purchase Price:        $140,000 (hard money: 90% LTV = $126K loan + $14K down)\n  Hard Money: 12%, 2pts, 4 months = $5,040 interest + $2,520 points\n  Closing Costs:          $4,200\n\nREHAB:\n  Budget + Contingency:  $45,000\n  Holding Costs (4 mo):   $3,200\n\nTOTAL CASH INVESTED:    $69,960 ($14K down + $4.2K close + $45K rehab + $3.2K hold + $5K HM int + $2.5K pts)\n\nPOST-REHAB:\n  ARV:                  $240,000\n  Monthly Rent:          $2,600 (2 units \u00d7 $1,300)\n  NOI:                   $1,150\/mo\n\nREFINANCE (75% LTV, DSCR 7.5%):\n  New Loan:             $180,000\n  Pay off Hard Money:   -$126,000\n  Refi Closing:          -$3,600\n  Cash-Out Proceeds:     $50,400\n\nRESULTS:\n  Capital Recovery:      $50,400 \/ $69,960 = 72%\n  Capital Left in Deal:  $19,560\n  Monthly Mortgage:      $1,259\n  Monthly Cash Flow:     $1,150 - $1,259 = -$109\/month<\/code><\/pre>\n<p>Again, negative cash flow at current DSCR rates. But the BRRRR calculator reveals the strategy still works for <strong>equity building<\/strong>: $19,560 cash left controls a $240K asset with $60K in equity. The -$109\/month costs $1,308\/year \u2014 while equity grows $7,200\/year at 3% appreciation plus $3,600\/year in principal paydown. Net wealth gain: +$9,492\/year on $19,560 invested = <strong>48.5% annualized total return<\/strong>.<\/p>\n<p>For state-specific BRRRR analysis: <a href=\"\/blog\/ohio-brrrr-strategy\/\">Ohio<\/a>, <a href=\"\/blog\/brrrr-strategy-georgia\/\">Georgia<\/a>, <a href=\"\/blog\/brrrr-strategy-north-carolina\/\">North Carolina<\/a>, <a href=\"\/blog\/brrrr-strategy-texas\/\">Texas<\/a>, <a href=\"\/blog\/brrrr-strategy-florida\/\">Florida<\/a> BRRRR guides.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BRRRR_Calculator_vs_Other_Calculators\"><\/span>BRRRR Calculator vs Other Calculators<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Need<\/th>\n<th>Use This<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Full BRRRR cycle analysis<\/td>\n<td><a href=\"\/brrrr-calculator\"><strong>BRRRR Calculator<\/strong><\/a><\/td>\n<\/tr>\n<tr>\n<td>Refinance proceeds only<\/td>\n<td><a href=\"\/brrrr-refinance-calculator\">BRRRR Refinance Calculator<\/a><\/td>\n<\/tr>\n<tr>\n<td>ARV estimation<\/td>\n<td><a href=\"\/arv-calculator\">ARV Calculator<\/a><\/td>\n<\/tr>\n<tr>\n<td>Hard money cost during hold<\/td>\n<td><a href=\"\/hard-money-loan-calculator\">Hard Money Calculator<\/a><\/td>\n<\/tr>\n<tr>\n<td>LTV and max loan<\/td>\n<td><a href=\"\/ltv-calculator\">LTV Calculator<\/a><\/td>\n<\/tr>\n<tr>\n<td>Post-refi cash flow<\/td>\n<td><a href=\"\/property-cash-flow-calculator\">Cash Flow Calculator<\/a><\/td>\n<\/tr>\n<tr>\n<td>DSCR qualification check<\/td>\n<td><a href=\"\/dscr-calculator\">DSCR Calculator<\/a><\/td>\n<\/tr>\n<tr>\n<td>Traditional buy-and-hold comparison<\/td>\n<td><a href=\"\/rental-property-calculator\">Rental Property Calculator<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2><span class=\"ez-toc-section\" id=\"5_Mistakes_When_Using_the_BRRRR_Calculator\"><\/span>5 Mistakes When Using the BRRRR Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Overestimating_ARV\"><\/span>1. Overestimating ARV<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The entire BRRRR strategy hinges on ARV. If your ARV is $190K but the appraisal comes in at $170K, your 75% LTV refinance drops from $142,500 to $127,500 \u2014 that is $15,000 less cash back. Use conservative comps. The BRRRR calculator lets you model multiple ARV scenarios \u2014 always check the downside case. Estimate ARV in the <a href=\"\/arv-calculator\">ARV calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Forgetting_Holding_Costs\"><\/span>2. Forgetting Holding Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Hard money interest, insurance, property taxes, and utilities during rehab add $1,500-$3,000\/month. A 4-month rehab at $2,000\/month = $8,000 in holding costs most investors forget. The BRRRR calculator includes a holding cost input \u2014 use it. Model hard money carrying costs in the <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Using_Pre-2022_Rate_Assumptions\"><\/span>3. Using Pre-2022 Rate Assumptions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>BRRRR guides written in 2020-2021 assumed 3-4% refi rates. In 2026, rates are 6.5-7.5%. That difference changes everything: a $142,500 loan costs $924\/month at 6.75% vs $680 at 3.5%. The $244\/month difference is the reason many BRRRR deals that &#8220;worked&#8221; at old rates are now cash-flow negative. Always use current rates in the BRRRR calculator.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Targeting_100_Capital_Recovery_at_Any_Cost\"><\/span>4. Targeting 100% Capital Recovery at Any Cost<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Forcing 100% recovery means higher LTV = higher monthly payment = worse cash flow. Sometimes recovering 85% of capital with positive cash flow is better than recovering 100% with -$200\/month. The BRRRR calculator shows the trade-off at different LTV levels \u2014 optimize for total return, not just recovery percentage.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Not_Checking_DSCR_Before_Refinancing\"><\/span>5. Not Checking DSCR Before Refinancing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If your DSCR (NOI \u00f7 annual debt service) is below 1.0, most lenders will decline the refinance entirely. You end up stuck with expensive hard money. Run the BRRRR calculator AND the <a href=\"\/dscr-calculator\">DSCR calculator<\/a> before buying \u2014 if the post-refi DSCR fails, the deal does not work regardless of ARV.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Does_BRRRR_still_work_in_2026_with_high_interest_rates\"><\/span>Does BRRRR still work in 2026 with high interest rates?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">BRRRR still works for equity building and capital recycling, but cash flow after refinance is challenging at 6.5-7.5% rates. Most BRRRR deals in 2026 produce slightly negative cash flow (-$50 to -$150\/month) but generate strong total returns through equity buildup and appreciation. The strategy works best in markets with low purchase prices and strong rent-to-price ratios (Cleveland, Indianapolis, Augusta). Per <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">NAR<\/a>, inventory is at the highest level since 2019 \u2014 giving BRRRR investors more negotiating power on distressed acquisitions. Use the <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a> to model your specific deal at current rates \u2014 do not rely on examples from pre-2022 rate environments.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"What_is_a_good_capital_recovery_percentage_for_BRRRR\"><\/span>What is a good capital recovery percentage for BRRRR?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">80-90% capital recovery is realistic in 2026. 100% recovery (getting ALL your money back) is the goal but increasingly difficult at current rates and valuations. At 75% LTV refinance, you need to buy at roughly 65% of ARV to achieve 90%+ recovery after rehab and closing costs. In competitive markets, those deep discounts are rare. The BRRRR calculator shows your exact recovery percentage \u2014 if it is below 70%, the deal ties up too much capital to repeat effectively.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"How_long_should_I_hold_before_refinancing_in_a_BRRRR\"><\/span>How long should I hold before refinancing in a BRRRR?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Per <a href=\"https:\/\/www.fanniemae.com\/selling-guide\" target=\"_blank\" rel=\"noopener noreferrer\">Fannie Mae guidelines<\/a>, most lenders require a 6-month seasoning period before cash-out refinance \u2014 meaning you must own the property for 6+ months before refinancing based on the new appraised value. Some DSCR lenders offer 3-month seasoning. During this waiting period, rent the property to establish rental income history (needed for DSCR loan qualification). Factor the seasoning period into your hard money holding costs in the BRRRR calculator.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Should_I_use_hard_money_or_cash_for_BRRRR\"><\/span>Should I use hard money or cash for BRRRR?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Cash eliminates hard money costs ($5,000-$10,000 per deal in interest and points) but ties up $150K-$200K until refinance. Hard money requires less upfront cash (10-20% down) but adds significant holding costs. The BRRRR calculator models both scenarios \u2014 run them side by side. If you have the cash and can tolerate 6 months of illiquidity, cash purchase produces better returns. If you need leverage to do multiple deals simultaneously, hard money is the tool. Compare costs in the <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_BRRRR_calculator_and_rental_property_calculator\"><\/span>What is the difference between BRRRR calculator and rental property calculator?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">The BRRRR calculator models a buy-rehab-refinance cycle with capital recovery analysis. The <a href=\"\/rental-property-calculator\">rental property calculator<\/a> models a traditional buy-and-hold with standard financing. Use the BRRRR calculator when you plan to force equity through renovation and refinance. Use the rental property calculator when buying a rent-ready property with a conventional mortgage. The key difference is the BRRRR calculator accounts for rehab costs, hard money carrying costs, and cash-out refinance proceeds.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/brrrr-calculator\"><strong>BRRRR Calculator<\/strong><\/a> \u2014 Full BRRRR cycle analysis<\/li>\n<li><a href=\"\/brrrr-refinance-calculator\"><strong>BRRRR Refinance Calculator<\/strong><\/a> \u2014 Cash-out refi proceeds<\/li>\n<li><a href=\"\/arv-calculator\"><strong>ARV Calculator<\/strong><\/a> \u2014 After-repair value estimation<\/li>\n<li><a href=\"\/hard-money-loan-calculator\"><strong>Hard Money Calculator<\/strong><\/a> \u2014 Bridge financing costs<\/li>\n<li><a href=\"\/ltv-calculator\"><strong>LTV Calculator<\/strong><\/a> \u2014 Refinance loan amount<\/li>\n<li><a href=\"\/dscr-calculator\"><strong>DSCR Calculator<\/strong><\/a> \u2014 Refi loan qualification<\/li>\n<li><a href=\"\/property-cash-flow-calculator\"><strong>Cash Flow Calculator<\/strong><\/a> \u2014 Post-refi monthly cash flow<\/li>\n<li><a href=\"\/rental-property-calculator\"><strong>Rental Property Calculator<\/strong><\/a> \u2014 Traditional buy-and-hold comparison<\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<p>State-specific BRRRR guides:<\/p>\n<ul>\n<li><a href=\"\/blog\/ohio-brrrr-strategy\/\">Ohio BRRRR Guide<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-strategy-georgia\/\">Georgia BRRRR Guide<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-strategy-north-carolina\/\">North Carolina BRRRR Guide<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-strategy-texas\/\">Texas BRRRR Guide<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-strategy-florida\/\">Florida BRRRR Guide<\/a><\/li>\n<\/ul>\n<p>Related blog guides:<\/p>\n<ul>\n<li><a href=\"\/blog\/brrrr-strategy-guide\/\">BRRRR Strategy Explained<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-refinance-calculator-guide\/\">BRRRR Refinance Guide<\/a><\/li>\n<li><a href=\"\/blog\/hard-money-calculator-how-to-use\/\">Hard Money Calculator Guide<\/a><\/li>\n<li><a href=\"\/blog\/arv-calculator-how-to-use\/\">ARV Calculator Guide<\/a><\/li>\n<li><a href=\"\/blog\/cost-to-rehab-a-house\/\">Cost to Rehab Guide<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The BRRRR calculator models every stage of the Buy-Rehab-Rent-Refinance-Repeat strategy in one analysis \u2014 from acquisition cost through cash-out refinance proceeds. On a $120K Cleveland SFR with $30K rehab that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=1034"}],"version-history":[{"count":1,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1034\/revisions"}],"predecessor-version":[{"id":1059,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1034\/revisions\/1059"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/1035"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=1034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=1034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=1034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}