Two-Phase BRRRR Model
Hard money → Refi → Rental
Phase 1: Hard money acquisition and rehab (months 0 to seasoning). Refi Event: transition at end of seasoning period. Phase 3: Year 1 rental operations post-refi. Holding costs and rental expenses are strictly separated by phase.
Dual Primary Metrics
Capital Left + Post-Refi CoC
Capital Left in Deal ($) shows how much cash remains trapped after refi. Post-Refi Cash-on-Cash (%) shows return on that remaining capital. Together they tell you both how much capital is at work and how efficiently it works. Special case: Capital Left ≤ $0 + positive CF = Infinite Return.
Before-Tax Analysis Only
v1 scope limitation
Refinance proceeds are generally treated as loan proceeds rather than income, but tax outcomes depend on the investor's structure, basis, depreciation, passive activity rules, state taxes, and exit strategy. This calculator does not model after-tax results. Rental income, depreciation, interest deductions, capital gains, depreciation recapture, and state taxes should be reviewed with a qualified tax professional.
Florida offers real advantages for BRRRR investors — no state income tax on rental income, strong population growth, and a deep rental market. But the insurance situation is the wild card that can turn a promising deal into a money pit. Landlord policies averaging $4,500/yr, separate flood policies for properties in FEMA zones, and an unpredictable carrier market mean your holding costs during rehab and your post-refi cash flow are both harder to pin down than in most states. The 1.1% property tax rate is moderate, but you need to account for reassessment at purchase and build insurance into every phase of your BRRRR analysis.
Purchase price: $180,000. Rehab budget: $35,000. Total cash invested: $215,000. After-repair value (ARV): $290,000. Rent after rehab: $1,850/mo.
Capital recovery: Cash-out refinance at 75% of ARV = $290,000 × 0.75 = $217,500. Cash returned: $217,500. Capital left in deal: $215,000 − $217,500 = -$2,500 (full recovery plus $2,500 back).
Post-refi cash flow: New loan: $217,500 at 7.5%, 30 years. Monthly P&I: $1,521. Property tax: $290,000 × 1.1% ÷ 12 = $266. Insurance: $300/mo ($3,600/yr, inland Jax). Total PITIA: $2,087. Monthly cash flow: $1,850 − $2,087 = -$237.
You recovered all your capital and have $72,500 in equity, but monthly cash flow is negative. This is typical for fully-leveraged Florida BRRRR deals. The strategy wins on capital recycling — you can redeploy that $215,000 into the next property immediately while this one builds equity through mortgage paydown and appreciation.
Purchase price: $260,000. Rehab budget: $50,000. Total cash invested: $310,000. After-repair value (ARV): $380,000. Total rent (2 units): $3,200/mo.
Capital recovery: Cash-out refinance at 75% of ARV = $380,000 × 0.75 = $285,000. Cash returned: $285,000. Capital left in deal: $310,000 − $285,000 = $25,000.
Post-refi cash flow: New loan: $285,000 at 7.5%, 30 years. Monthly P&I: $1,993. Property tax: $380,000 × 1.1% ÷ 12 = $348. Insurance: $375/mo ($4,500/yr). Total PITIA: $2,716. Monthly cash flow: $3,200 − $2,716 = $484/mo.
Cash-on-cash return on the $25,000 left in the deal: $484 × 12 ÷ $25,000 = 23.2%. The duplex works because dual rent streams cover the high insurance and tax load. You left $25,000 in but are earning a 23.2% annual return on that capital while holding $95,000 in equity. This is why multi-unit BRRRR deals outperform SFR in Florida.
| Metro | BRRRR Viability | Why |
|---|
| Jacksonville | Best in FL | Lowest entry prices, inland = cheaper insurance, good rent growth |
| Orlando | Good for multi-unit | Strong ARV comps, tourism-driven rental demand, higher rehab costs |
| Tampa Bay | Possible but tight | Entry prices rising, flood zones along the bay add insurance cost |
| Miami-Dade | Very difficult | Entry prices too high, insurance extreme, margins too thin for BRRRR |
Not locking insurance before closing. Florida's carrier market is volatile. Get binding quotes before you close on the purchase — not after. Carriers can pull quotes within days, and finding coverage mid-rehab can delay your entire timeline and blow your holding cost budget.
Ignoring flood zone designation. A property that looks like a great deal might sit in FEMA Zone AE, adding $1,800-$3,600/yr in mandatory flood insurance. Pull the FEMA flood map before you even run your BRRRR numbers. One flood policy can erase your entire cash flow margin.
Using the seller's tax bill. If the previous owner had a homestead exemption, their tax bill could be 30-50% below what you will pay as an investor. Always calculate property tax on the purchase price (or ARV for post-refi analysis) using the full 1.1% rate.
Underestimating rehab costs near the coast. Coastal Florida properties may require hurricane straps, impact windows, or upgraded roofing to qualify for insurance. These items can add $8,000-$15,000 to your rehab budget that would not exist on an identical property inland.
What is the best Florida city for a first BRRRR deal?
Jacksonville. Entry prices in the $150K-$200K range, inland locations with reasonable insurance costs, strong rental demand from the naval base and healthcare sector, and solid ARV appreciation make it the most forgiving market in Florida for first-time BRRRR investors.
How does Florida insurance affect my holding costs during rehab?
You need a builder's risk or vacant property policy during rehab, which can run $3,000-$5,000 for a 6-month period in Florida. This is significantly more than the $1,000-$2,000 typical in lower-risk states. Budget for it as part of your total project cost.
Can I do a BRRRR on a Florida condo?
Technically yes, but HOA restrictions often limit rentals, and the HOA fee itself adds to your monthly costs post-refi. Many Florida condo associations also require board approval for tenants, which slows the "Rent" phase. Stick with single-family or small multi-family for BRRRR.
What rehab budget should I plan for a Florida BRRRR?
Plan $30,000-$50,000 for a standard cosmetic-plus rehab (kitchen, baths, flooring, paint, fixtures). If the property needs a roof, expect an additional $12,000-$20,000. Coastal properties may need impact windows ($8,000-$15,000) to qualify for insurance discounts.
How long does seasoning take for a Florida cash-out refi?
Standard seasoning is 6 months from the purchase date. Some DSCR lenders allow 3-month or no-seasoning refinances at slightly higher rates. During this waiting period, you are paying your hard money loan interest, taxes, and insurance — factor those holding costs into your total investment.
Is negative cash flow after refi normal for Florida BRRRR?
On single-family rentals with a full 75% cash-out refi, yes. Insurance at $300-$400/mo and tax at $250-$350/mo stack on top of a fully leveraged mortgage payment. Multi-unit properties (duplexes, triplexes) handle this better because multiple rent streams cover one set of fixed costs.
Should I avoid flood zone properties entirely for BRRRR?
Not necessarily, but you must price in the flood insurance. If NFIP flood coverage adds $2,400/yr ($200/mo) and it kills your post-refi cash flow, then yes — skip it. If the purchase price is low enough to absorb the cost and still hit your capital recovery target, it can work. Always run the numbers with flood insurance included before making an offer.
- Florida Office of Insurance Regulation — Citizens Property Insurance rate filings (2024)
- FEMA Flood Map Service Center — National Flood Hazard Layer, Duval & Orange County
- FRED — 30-Year Fixed Mortgage Rate, Freddie Mac weekly survey
- Zillow Home Value Index — Jacksonville, Orlando, Tampa MSAs (Q1 2025)
- Florida Department of Revenue — Property Tax millage rates by county (2024)
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Two-Phase BRRRR Model
Hard money → Refi → Rental
Phase 1: Hard money acquisition and rehab (months 0 to seasoning). Refi Event: transition at end of seasoning period. Phase 3: Year 1 rental operations post-refi. Holding costs and rental expenses are strictly separated by phase.
Dual Primary Metrics
Capital Left + Post-Refi CoC
Capital Left in Deal ($) shows how much cash remains trapped after refi. Post-Refi Cash-on-Cash (%) shows return on that remaining capital. Together they tell you both how much capital is at work and how efficiently it works. Special case: Capital Left ≤ $0 + positive CF = Infinite Return.
Before-Tax Analysis Only
v1 scope limitation
Refinance proceeds are generally treated as loan proceeds rather than income, but tax outcomes depend on the investor's structure, basis, depreciation, passive activity rules, state taxes, and exit strategy. This calculator does not model after-tax results. Rental income, depreciation, interest deductions, capital gains, depreciation recapture, and state taxes should be reviewed with a qualified tax professional.
BRRRR Quick Reference — Key Thresholds & Benchmarks
75% Rule
Enables full capital recovery at standard 75% LTV refi. Deals outside rule leave capital trapped unless higher LTV lender found.
2026 HM Rates
Industry range for residential bridge/hard money in 2026. 80% LTC standard. 6–12mo seasoning required by most lenders.
2026 Refi Rates
Refinance LTV limits vary by lender, program, and property type. DSCR requirements vary by lender, program, and borrower profile. 30-year standard amortization.
Good 2026 BRRRR
Strong tier ($5–15K) is excellent in 2026 environment. Infinite Return (<$0 + positive CF) requires deep-value off-market sourcing.
Capital Left Formula
Capital Left = Cash Invested − Refi Proceeds
Refi Proceeds = New Loan − HM Payoff − Refi Closing
Capital Recovery
Recovery % = Refi Proceeds ÷ Cash Invested × 100
Target: 90%+ for BRRRR scenario in 2026
Consistency Identity
All-In Cost = Cash Invested + HM Loan Payoff
Tolerance ±$5. Use as anti-double-counting check.