Strategy — BRRRR
Buy, rehab, rent, refinance — without leaving cash trapped in the deal
The BRRRR thesis only works when the refinance appraisal lands. DealForge underwrites the refinance the way the lender will, stress-tests it, and tells you up front how much of your original cash you'll really pull back out.
- Refinance proceeds = ARV × LTV, with DSCR check
- True cash-left-in after refi closes
- Post-refi cash flow and cash-on-cash
- Appraisal stress-test (±5% / ±10%)
- Hard-money to DSCR transition modeled cleanly
- Same comps drive ARV and rent assumptions
What it is
BRRRR converts short-term capital into a permanently financed, cash-flowing rental. The whole strategy hinges on a refinance that returns your original cash. DealForge runs the refinance math against both LTV and DSCR constraints — the two ways the strategy fails — so you only chase deals that will actually clear both tests.
Who it's for
Long-term wealth builders
Compounding rentals without compounding capital.
Active investors with limited cash
Recycle the same dollars across multiple properties.
Out-of-state BRRRR investors
Stress-test markets you don't drive every weekend.
How it works
- Step 1
Buy with short-term capital
Hard money, private money, or cash — modeled with carry cost.
- Step 2
Rehab to refi-ready condition
Trade-level scope that hits the ARV the appraiser will support.
- Step 3
Rent at market
Rent comps drive DSCR for the refinance underwriter.
- Step 4
Refinance into long-term debt
ARV × LTV, capped by DSCR; cash-out proceeds calculated automatically.
- Step 5
Repeat
Snapshot the deal; recycle the cash; do the next one.
BRRRR vs Buy & Hold
| Dimension | BRRRR | Buy & Hold |
|---|---|---|
| Acquisition condition | Distressed | Turnkey or light |
| Capital recycling | Refinance pulls cash out | Cash stays in |
| Execution risk | Rehab + appraisal | Tenant + market |
| Velocity | Higher | Lower |
BRRRR refinance calculator
Estimate refi proceeds, cash left in the deal, post-refi cash flow, and DSCR.
From assumptions ↓
Default expense, tax & vacancy assumptionsClick to expand — every default is editable and feeds back into the numbers above.ShowHide
Default 6% · at default
% of rent reserved for vacant months. +1% reduces NOI by 12 × rent × 0.01.
Default 8% · at default
Pro-managed rentals run 8–10% of collected rent. Self-manage and set to 0 — but bank the time cost.
Default 5% · at default
Ongoing repairs. Older homes and B/C-class markets push toward 8–10%.
Default 5% · at default
Roof, HVAC, water heater. Skipping this is how landlords blow up year 7.
Default $3,000 · at default
Annual property tax bill. Check the county assessor — post-sale reassessment often raises this.
Default $1,500 · at default
Landlord policy. Florida, Louisiana, coastal CA can run 2–4× this default.
Estimates only. DealForge models every line item — taxes, insurance, vacancy, capex, financing fees — when you run the full analyzer.
Inputs, assumptions & how to read the results
What each field means, the math we apply, and what counts as a healthy number.
How is 'refi proceeds' calculated?
ARV × Refi LTV. DSCR lenders typically cap at 70–80% LTV on stabilized rentals. The appraisal — not your underwriting ARV — ultimately determines the actual proceeds.
What is 'cash left in' and why does it matter?
Total cash invested (purchase + rehab + closing) minus refi proceeds. The BRRRR thesis is to drive this number near zero so you can recycle your capital into the next deal.
Why does the calculator say 'Infinite' for cash-on-cash?
When cash left in is zero or negative, the denominator vanishes — you own a cash-flowing rental with no remaining basis. It's the BRRRR goal, not a math error.
What is a healthy DSCR?
DSCR = NOI ÷ annual debt service. Lenders typically require ≥1.20–1.25 on refi; <1.0 means the rent doesn't cover the mortgage and the loan won't close.
Where does monthly opex come from?
The assumptions panel below — vacancy, management, maintenance, and capex percentages of rent, plus property tax and insurance. Every field is editable and updates DSCR and cash-on-cash live.
Refi rate I should use?
DSCR refi rates currently run 1.5–2.5 points above 30-year conventional. Conservative underwriting stress-tests +1% over today's quoted rate.
Frequently asked questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. You acquire a distressed property with short-term capital, renovate, place a tenant, then refinance into long-term debt at the new appraised value — ideally pulling most or all of your original cash back out to repeat the process.
How is BRRRR different from a flip?
A flip exits via sale; BRRRR exits via refinance and holds the property as a rental. The underwriting cares about ARV (for the refinance) and rent (for the long-term hold). DealForge models both in a single view.
What is a 'true infinite return'?
When the cash-out refinance returns 100% or more of your original cash invested, you own a cash-flowing rental with zero remaining basis — your cash-on-cash math has a denominator of zero. Achievable when you buy well, rehab to scope, and the appraisal supports your ARV.
What LTV do BRRRR lenders offer?
DSCR refinances commonly fund at 70–80% of appraised value for stabilized rentals with a 1.0+ DSCR. DealForge models DSCR alongside LTV so you don't over-leverage.
What if the refinance comes up short?
It happens. DealForge stress-tests refinance proceeds against ±10% appraisal swings during underwriting, so a short refinance is a known scenario — not a surprise.
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