Question 1

What is the BRRRR strategy in real estate?

Accepted Answer

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Investors purchase a distressed property below market value, renovate it to force appreciation, rent it to generate cash flow, refinance based on the new After-Repair Value to pull their capital back out, and repeat the process with the recycled capital.

Question 2

What is a good cash-on-cash return for a BRRRR deal?

Accepted Answer

Most BRRRR investors target 10–15% cash-on-cash return. An "infinite" return, where the refinance pulls out all invested capital and the property still cash flows, is considered a home run but is not the baseline to expect in every market.

Question 3

How do I estimate ARV accurately?

Accepted Answer

Pull at least three recent sold comps within half a mile, similar square footage, bed/bath count, and condition. Adjust for differences. Then pressure-test the number with a local agent or appraiser, banks will only loan against what an appraiser supports.

Question 4

What LTV should I use for the refinance?

Accepted Answer

Most investment-property cash-out refinances top out at 75% LTV on a conventional loan. Some portfolio and DSCR lenders go to 80%. Using 70–75% in your analysis keeps you conservative.

Question 5

Does this calculator include a 5-year cash flow projection?

Accepted Answer

No. This free tool is a single-scenario snapshot by design. For 5-year projections, multi-scenario comparison, saved scenarios, and PDF export, start a free 30-day trial of the full Re:InvestorHub app.

Question 6

Should I count closing costs on the refinance?

Accepted Answer

Refinance closing costs typically run 2–3% of the loan amount. You can either roll them into your loan or include them as additional cash invested. For a quick first-pass analysis this calculator keeps inputs minimal; add them to the Closing Costs field if you want to be conservative.

Free BRRRR Calculator: Buy, Rehab, Rent, Refinance, Repeat