What is the BRRRR method?

Buy, Rehab, Rent, Refinance, Repeat: buy a property below its potential, renovate it, rent it, then refinance against the higher after-repair value to pull capital back out and do it again. The math that matters is how much cash the refinance leaves stuck in the deal and what return that remaining cash earns.

What does "infinite return" mean?

If the refinance hands back as much cash as you put in (or more), you have none of your own capital left in the deal, so any positive cash flow is a return on zero invested dollars, which is undefined as a percentage. This calculator flags that case explicitly and shows how much cash, if any, you pulled out over your basis. It’s the BRRRR ideal, and it depends entirely on the appraisal and LTV being right.

How do the hard-money hold and seasoning period change the math?

BRRRR is usually bought with short-term hard money that is interest-only on the drawn balance, so interest accrues on what you actually borrowed, month by month, until you refinance. Most lenders also require a seasoning period, commonly six months of ownership, before they will lend against the new appraised value. Every month of seasoning is another month of interest and carrying costs (taxes, insurance, utilities) that add to the cash you have tied up, so a longer hold traps more capital. The capital timeline shows this stage by stage.

Why is the refinance based on ARV, not what I paid?

A cash-out refinance is sized off the appraised after-repair value, not your purchase price. That is the whole point of BRRRR. The new loan equals ARV times the refinance LTV. Because every downstream number (refi proceeds, cash left in, equity) hangs off that appraisal, the ARV is the single most important and most uncertain input.

What LTV do refinance lenders allow?

Commonly around 70–80% of appraised value for investment-property cash-out refis, and most lenders require a seasoning period of several months of ownership before they’ll use the new appraised value. Both vary by lender. Confirm before you count on the numbers.

What’s the biggest risk in this math?

The ARV. Every downstream number (refi proceeds, capital left, equity) hangs off the appraisal. Use the ARV sensitivity table to see how far the appraisal can come in light before capital stays trapped, because sometimes it does.

Free BRRRR Calculator: Cash Left In, Refi & Cash Flow

The buy

Purchase price

Rehab budget paid in cash

Purchase closing costs

After-repair value (ARV) appraised value after rehab

Hard money & the season (the hold)

Short-term acquisition loan, interest-only on the drawn balance. Seasoning is how long the lender makes you hold before the cash-out refi.

Hard money financed % of purchase (loan-to-cost)

Hard money rate yearly, interest-only

Hard money points % of loan, paid upfront

pts

Seasoning period

months

Carrying costs during the season

Paid every month you hold before the refi. Each switches between yearly and monthly; we convert it and show the figure under the field. Blank skips it.

Holding property tax

Holding insurance builder's risk / vacant policy

Holding utilities power, water while vacant

The refinance

The new loan is a share of the appraised ARV, not what you paid, and pays off the hard money.

Refinance LTV % of ARV the lender will lend

Refi rate yearly, fixed

Refi term

years

Refi closing costs

The rental (after the refi)

Each cost switches yearly/monthly, and management, maintenance, capex & vacancy also switch between a % of rent and a dollar amount. Management is charged on collected rent; capex is a reserve, out of NOI but out of cash flow.

Monthly rent gross scheduled rent

Vacancy % of gross rent, or $

Property tax county bill

Insurance landlord policy

Flood insurance if in a flood zone

HOA dues if any

Property management % of collected rent, or $

Maintenance % of gross rent, or $

CapEx reserve % of gross rent, or $

Owner-paid utilities water, trash, etc.

Refi lenders typically cap around 70–80% of ARV and require seasoning. Confirm both with your lender. Hard-money interest here is interest-only on the drawn balance; the refi payment is the new amortizing loan.

Cash left in the deal after refi

Capital in through the season

Down payment cash part of the buy–

Rehab–

Purchase closing–

Carrying costs (× season)–

Hard-money points–

Hard-money interest (season)–

Total cash invested–

The refinance

Refi loan (ARV × LTV)–

− Hard-money payoff–

− Refi closing–

Cash returned by refi–

Cash left in the deal–

The rental (post-refi, yearly)

Effective gross income (collected)–

− Operating expenses–

Net operating income (NOI)–

Cap rate NOI ÷ ARV–

New payment (P&I)–

DSCR NOI ÷ debt service–

Cash flow after refi–

Cash-on-cash on capital left–

Return on equity cash flow ÷ equity–

Equity after refi (ARV − loan)–

Capital timeline: trapped, then recovered

Cash goes in over the season; the hard-money balance accrues interest only on what's drawn. The refinance in the seasoning month pays off the hard money and hands capital back.

What if the appraisal comes in different?

Same deal, recomputed at nearby ARVs. The change column is the move from your own ARV, so you do not have to subtract rows in your head: a positive change means that much more of your cash stays trapped.

ARV	Refi loan	Cash left in	Change vs your ARV	Cash-on-cash

Next step

Check the rental’s numbers in the cash flow & DSCR calculator, gut-check price with the cap rate calculator, sanity-check your offer with the maximum allowable offer calculator, or browse all the calculators. Already own a BRRRR you rehabbed and refinanced? Track its real equity, debt, and cash flow going forward instead of re-running this one.

Market data: 4,812 rental market grades · Best cash-flow rental markets 2026

Common questions