Skip to main content
Strategy

BRRRR Calculator

Calculate your Buy, Refurbish, Rent, Refinance, Repeat strategy. See exactly how much capital you can recycle and whether you can achieve infinite returns.

US BRRRR: cash flow + DSCR + tax shield

What US investors look at that UK investors don't — DSCR for loan qualification, and annual MACRS depreciation as a tax shield.

DSCR (debt-service coverage)

0.92x

✗ Below most lender thresholds (1.0x min typical)

Annual depreciation (estimated)

$6,000

Shelters ~$6,000 of rental income from federal tax. Model precisely →

Net cash flow (pre-tax)

-$82/mo

After factoring in depreciation, taxable income is ~$0/yr.

Considering selling after the refi phase? A 1031 exchange lets you roll the gain (including depreciation recapture) into a larger property, deferring tax indefinitely.

B

Buy

Below market value

R

Refurbish

Add value

R

Rent

Generate income

R

Refinance

Pull out capital

R

Repeat

Scale your portfolio

Phase 1: Buy & Refurbish

Stamp Duty: $7,500

18.2% below ARV
Equity: $40,000

Typically 25% of purchase price

Bridging Finance

Short-term loan for purchase
12%
6 months

Phase 4: Refinance

75%

Refinance amount: $165,000

5.5%
25 years

Phase 3: Rent

10%
5%
2 weeks

🎉 Infinite Returns Achieved!

You can pull ALL your money out and still own the asset

Money Left In

$0

Infinite returns!

Cash-on-Cash

Annual return on capital

Monthly Cash Flow

-$82

After refinance

Total Cash Required:$88,550
Refinance:$165,000
Equity Created:$40,000

Capital Flow

Cash Out (Purchase)

-$88,550

Cash In (Refinance)

+$165,000

Net Position

+$0 PROFIT

Monthly Numbers (After Refinance)

Rental Income+$1,154
Mortgage Payment-$803
Management & Costs-$433
Monthly Cash Flow-$82
Annual Cash Flow-$990
Total Equity$55,000

BRRRR Tips

CAUTION
Your purchase is only 18.2% below ARV. Aim for 25%+ to ensure refinance covers costs.
TIP
Always get 3 builder quotes and add 15-20% contingency to refurb budgets.
INFO
Most lenders require 6-month seasoning before refinancing to the new value.

Money Left In Deal

Money Left In = Total Cash Required - Refinance Amount

If Money Left In ≤ 0, you've achieved 'infinite returns' as you've pulled out all your capital while still owning an income-producing asset.

Frequently Asked Questions

What does BRRRR stand for?

What is 'Infinite Returns'?

What discount should I look for?

What's a bridging loan?

When should I refinance?

What are the risks of BRRRR?