What is ARV in real estate?

ARV (After Repair Value) is the estimated market value of a property after all planned renovations are complete, determined by comparable sales in the same area. Lenders typically lend 70-75% of ARV. Accurately estimating ARV before purchasing is critical — overestimating is the #1 BRRRR mistake.

What is the 70% rule in BRRRR?

Your maximum all-in cost (purchase + rehab) should not exceed 70% of ARV. For a $200,000 ARV property, spend no more than $140,000 total. This leaves room for lender LTV requirements (typically 75% ARV), closing costs, and profit margin. Use it as a quick filter, then run full analysis.

How much money do you need to start BRRRR?

BRRRR requires upfront capital for purchase (cash or hard money loan), renovation, closing costs, and holding costs during rehab. A typical entry-level deal requires $50,000-$150,000 upfront. The goal is to recover most at refinance. This calculator shows exactly how much cash remains after refinance.

What is a cash-out refinance?

A cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. In BRRRR, you refinance after renovation based on the higher ARV — pulling out your invested capital. Lenders typically require 6-12 months of seasoning and cap LTV at 70-75% for investment properties.

What is capital recycled in BRRRR?

Capital recycled is the percentage of your initial investment recovered at refinance. 100% recycle means you got all your money back and still own the property. Below 100% means some capital remains in the deal. A high recycle rate lets you scale faster — use the same capital to buy the next property.

What are the risks of the BRRRR strategy?

Key BRRRR risks: overestimating ARV, underestimating rehab costs, extended timelines increasing holding costs, inability to refinance (appraisal comes in low), over-leverage reducing cash flow after refinance, and tenant/vacancy risk. Successful BRRRR investors build in substantial margin on all estimates.

BRRRR Calculator

Model the full Buy → Rehab → Rent → Refinance → Repeat cycle. See how much capital you can recycle and whether your deal works.

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Last updated: 2026-05-04

The BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — is a real estate investing method that recycles capital across multiple properties. An investor purchases a distressed property at a discount, renovates it to increase its After Repair Value (ARV), rents it for cash flow, then does a cash-out refinance at 70–75% of ARV to recover their initial investment and fund the next acquisition.

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1 — Buy

Purchase Price

Purchase Closing Costs

Holding Costs During Rehab

Loan interest, utilities, insurance during renovation

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2 — Rehab

Total Rehab Cost

After-Repair Value (ARV)

Estimated market value after renovations complete

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3 — Rent

Monthly Rent

Monthly Operating Expenses

Taxes, insurance, management, maintenance, vacancy

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4 — Refinance

Refinance LTV

% of ARV

Most lenders offer 70–75% LTV on BRRRR refis

Refi Interest Rate

Refi Loan Term

Refi Closing Costs

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BRRRR Results

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Enter deal details and press
Calculate BRRRR Deal

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Amortization Schedule

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Run calculation to see amortization

Frequently Asked Questions

Common questions about this calculator and how to use it effectively.

What does BRRRR stand for in real estate? ▼

Buy, Rehab, Rent, Refinance, Repeat. You purchase a distressed property below market, renovate it to force appreciation, place a tenant to stabilize income, refinance based on the new appraised value to pull out capital, then repeat the process — building a portfolio with recycled funds.

How does the BRRRR refinance work? ▼

After renovation and tenant placement, you refinance the property at 70–75% of the new appraised value (ARV). If your all-in cost was $160,000 and ARV is $220,000, a 75% LTV refi = $165,000 loan — covering your entire investment and leaving $5,000 in your pocket while retaining the asset. Check your deal's cap rate with our Cap Rate Calculator once you have your ARV and rent estimates.

What LTV can I get on a BRRRR refinance? ▼

Conventional lenders typically offer 70–75% LTV on investment property cash-out refinances. Portfolio lenders sometimes go to 80%. Many investors use the DSCR (Debt Service Coverage Ratio) loan product — which qualifies based on rental income, not personal income — for BRRRR refis.

What is the 70% rule for BRRRR? ▼

Maximum offer = (ARV × 70%) − Rehab costs. Example: $250,000 ARV × 70% = $175,000 − $45,000 rehab = $130,000 max purchase. This rule ensures enough equity at purchase to recover your capital at a 70% LTV refinance, leaving room for carrying costs and profit margin. Check your deal's cap rate with our Cap Rate Calculator once you have your ARV and rent estimates.

What is ARV (After Repair Value)? ▼

ARV is the estimated market value of the property after all planned renovations are complete. It's calculated by analyzing recent comparable sales (comps) of similar renovated properties nearby. ARV is the cornerstone of BRRRR math — overestimating ARV is the most common reason BRRRR deals fail to perform. Check your deal's cap rate with our Cap Rate Calculator once you have your ARV and rent estimates. Model how BRRRR portfolio income could fund your retirement with our Retirement Calculator. For primary home purchase math, our Home Affordability Calculator shows how much house your income supports.

What happens if I can't pull out all my cash at refinance? ▼

If the refi doesn't return all your capital, you have 'equity left in the deal.' This isn't a failure — it means you own a cash-flowing rental property with some personal equity. The question is whether the remaining cash deployed earns an acceptable return. This calculator shows your CoC on remaining capital.

What are holding costs in BRRRR? ▼

Holding costs are expenses during the renovation period: hard money or bridge loan interest (typically 8–15% annualized), property taxes, insurance, and utilities. On a 3-month rehab with $150,000 financed at 12%: ~$4,500 in interest alone. Always include holding costs in your all-in cost calculation.

How is BRRRR different from fix and flip? ▼

Fix-and-flip: renovate and sell for a profit. BRRRR: renovate, refinance, and keep as a rental — building long-term wealth while recovering capital. BRRRR is better for wealth accumulation; flipping generates immediate income. Many investors do both — flip some deals for cash, BRRRR others for portfolio growth. Compare BRRRR compounding against dividend reinvestment using our DRIP Calculator, or build a full retirement plan with our Retirement Calculator.

What is a good refinance LTV for the BRRRR strategy?

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Most lenders offer cash-out refinances on investment properties at 70–75% LTV (loan-to-value based on ARV), though some portfolio lenders go to 80%. The goal of BRRRR is to recycle as much of your initial cash as possible — ideally recovering 100% or more. At 75% LTV on a $200,000 ARV, your refi loan is $150,000. If your total cash in (purchase + rehab + closing + holding) was $145,000, you've fully recycled your capital and still own the asset. The key metric is cash left in the deal after refinance — lower is better for capital efficiency. Always verify post-refi cash flow is positive after the new mortgage payment, taxes, insurance, and a vacancy/maintenance reserve.

BRRRR Calculator

Frequently Asked Questions

What is a good refinance LTV for the BRRRR strategy?

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