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.
Ohio is one of the fastest-growing states for real estate investors, and the BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — works here because of low entry prices in secondary metros, strong population growth, and a deep pool of DSCR and conventional refinance lenders. The catch: Ohio property tax at 2.1% hits your holding costs hard during the rehab phase and compresses cash flow after refinance. Successful Ohio BRRRR investors focus on forced appreciation through rehab, target properties where the ARV supports a 75% cash-out refi that recovers most or all of the capital, and accept that monthly cash flow may be thin after refinance.
Purchase price: $155,000. Rehab budget: $30,000. Total cash invested: $185,000. After-repair value (ARV): $250,000. Rent after rehab: $1,750/mo.
Capital recovery: Cash-out refinance at 75% of ARV = $250,000 × 0.75 = $187,500. Cash returned: $187,500. Capital left in deal: $185,000 − $187,500 = -$2,500 (full recovery plus $2,500 back in pocket).
Post-refi cash flow: New loan: $187,500 at 7.5%, 30 years. Monthly P&I: $1,311. Property tax: $250,000 × 2.1% ÷ 12 = $438. Insurance: $275/mo. Total PITIA: $2,024. Monthly cash flow: $1,750 − $2,024 = -$274.
The cash flow is negative, which is common for Ohio BRRRR deals after a full 75% refi. The win here is capital recovery — you pulled all your money out and still own a $250,000 asset with $62,500 in equity. Many investors accept negative cash flow of $200-$300/mo as the cost of recycling capital into the next deal.
Purchase price: $220,000. Rehab budget: $45,000. Total cash invested: $265,000. After-repair value (ARV): $330,000. Total rent (2 units): $2,800/mo.
Capital recovery: Cash-out refinance at 75% of ARV = $330,000 × 0.75 = $247,500. Cash returned: $247,500. Capital left in deal: $265,000 − $247,500 = $17,500.
Post-refi cash flow: New loan: $247,500 at 7.5%, 30 years. Monthly P&I: $1,731. Property tax: $330,000 × 2.1% ÷ 12 = $578. Insurance: $325/mo. Total PITIA: $2,634. Monthly cash flow: $2,800 − $2,634 = $166/mo.
Cash-on-cash return on the $17,500 left in the deal: $166 × 12 ÷ $17,500 = 11.4%. The duplex produces positive cash flow because two rent streams cover one mortgage. You left $17,500 in the deal but are earning an 11.4% annual return on that capital while holding $82,500 in equity.
| Metro | BRRRR Viability | Why |
|---|
| Columbus | Strong | Low entry prices ($130K-$180K), military demand, solid ARV spreads |
| Cleveland | Strong | Large inventory, duplex/triplex opportunities, deep contractor pool |
| Dayton-Kettering | Moderate | Higher entry prices squeeze margins; better for appreciation BRRRR |
| Cincinnati | Difficult | Entry prices too high, rent-to-price ratio too low for capital recovery |
Forgetting tax reassessment. After rehab, the county may reassess your property at or near the new ARV. If you budgeted holding costs based on the old tax bill, you will be short. Always calculate property tax on the projected ARV, not the purchase price.
Underestimating rehab timelines in permit-heavy cities. Cleveland has minimal permitting requirements, but Columbus and Dayton enforce building codes more strictly. A 60-day rehab can stretch to 90+ days if permits are needed, adding holding costs that eat into your capital recovery.
Ignoring the refi seasoning period. Most DSCR and cash-out refinance lenders require a 6-month seasoning period — you must own the property for six months before they will lend on the new appraised value. Budget six months of holding costs (mortgage, tax, insurance, utilities) into your total project cost.
Chasing cash flow after refi. In Ohio, a full 75% cash-out refi on a single-family rental often produces negative monthly cash flow because the property tax is so high. Plan for this. The BRRRR strategy is about capital velocity, not cash flow — you recover your capital and redeploy it into the next deal.
How much rehab budget should I plan for a Ohio BRRRR?
Most successful Ohio BRRRR projects run $25,000-$50,000 in rehab for single-family homes. This typically covers updated kitchens, bathrooms, flooring, paint, and minor systems work. Full gut renovations ($60K+) rarely pencil out unless the ARV is well above $300K.
What loan do I use to buy the initial property?
Most BRRRR investors use hard money or private money for the initial purchase and rehab. Typical terms: 80-90% of purchase price, 100% of rehab in draws, 10-14% interest rate, 12-month term. Your exit is the cash-out refinance into a permanent loan.
How long is the seasoning period for Ohio cash-out refinance?
Most lenders require 6 months from the date of purchase. A few DSCR lenders offer 3-month seasoning or no seasoning if you purchased with cash, but these programs typically come with higher rates.
Is negative cash flow after refi normal in Ohio?
Yes, especially on single-family properties with a full 75% LTV refi. The 2.1% property tax adds $400-$600/mo to your payment. Many Ohio BRRRR investors accept -$200 to -$400/mo cash flow as the cost of recovering their capital and building equity.
Should I protest the property tax appraisal after rehab?
Absolutely. Counties often reassess aggressively after a recorded sale or visible rehab. Filing a protest within the May 15 deadline is standard practice. Even a modest reduction of $15,000-$20,000 in assessed value saves $315-$420/yr in tax.
Can I BRRRR in Cincinnati right now?
It is very difficult. Cincinnati's median home price is too high relative to rents, which means rehab spreads are thin and post-refi cash flow is deeply negative. Columbus and Cleveland offer much better entry points for the BRRRR strategy today.
What ARV spread do I need for a Ohio BRRRR to work?
Target an all-in cost (purchase + rehab) at or below 75% of ARV. This lets you recover 100% of your capital on the refi. Example: if ARV is $250,000, your all-in cost should be $187,500 or less. If you go above 75%, you will leave cash in the deal.
- Ohio Comptroller of Public Accounts — Property Tax Rates by County (2024)
- U.S. Census Bureau — Population Estimates, Ohio MSAs (2024)
- FRED — 30-Year Fixed Mortgage Rate, Freddie Mac weekly survey
- Zillow Home Value Index — Columbus, Cleveland, Dayton-Kettering (Q1 2025)
- Ohio Real Estate Research Center, Ohio A&M — Housing Market Reports (2024)
- Ohio Department of Taxation — property tax data
- Ohio Housing Finance Agency
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Two-Phase BRRRR Model
Hard money → Refi → Rental
Phase 1: Hard money acquisition and rehab (months 0 to seasoning). Refi Event: transition at end of seasoning period. Phase 3: Year 1 rental operations post-refi. Holding costs and rental expenses are strictly separated by phase.
Dual Primary Metrics
Capital Left + Post-Refi CoC
Capital Left in Deal ($) 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.