BRRRR Analysis Sheet

What's included

• After Repair Value (ARV) estimation with comp analysis
• Detailed rehab budget with 30+ line-item categories
• Holding cost calculator during renovation
• Refinance projection at 70%, 75%, and 80% LTV scenarios
• Capital recovery and equity capture analysis
• Post-refinance cash flow projections
• Deal summary dashboard with go/no-go indicators
• Maximum Allowable Offer (MAO) calculator

What is the BRRRR Strategy in Real Estate?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat—a powerful strategy for building a rental portfolio using the same capital over and over. You purchase a distressed property below market value, renovate it to increase value, rent it out, refinance to pull your capital back out, then repeat with another property. Done correctly, you can acquire multiple cash-flowing rentals while recycling your initial investment. This BRRRR calculator helps you analyze each deal to ensure the numbers work before you buy.

The 5 Steps of BRRRR Explained

Step 1 (Buy): Find properties at 65-75% of ARV—foreclosures, auctions, wholesale deals. Step 2 (Rehab): Renovate to force appreciation, focusing on high-ROI improvements. Step 3 (Rent): Place quality tenants at market rent. Step 4 (Refinance): Cash-out refinance at 75-80% of new appraised value, recovering most or all of your capital. Step 5 (Repeat): Use recovered capital to purchase the next property. Our BRRRR analysis sheet walks you through each step with the exact numbers.

Calculating Your Maximum Offer for BRRRR Deals

The 70% rule is your starting point: never pay more than 70% of ARV minus repair costs. This leaves room for holding costs, refinance fees, and profit margin. However, real BRRRR analysis goes deeper—you need to calculate exact holding costs (interest, taxes, insurance, utilities during rehab), refinance costs (typically 2-3% of loan amount), and your target capital recovery percentage. Most BRRRR investors aim to recover 90-100% of their cash within 6-12 months while keeping a cash-flowing asset.

BRRRR Risks and How to Mitigate Them

The biggest BRRRR risk is overestimating ARV or underestimating rehab costs—either mistake can leave cash trapped in the deal. Seasoning requirements (6-12 months before refinance) can also impact your timeline. Market shifts between purchase and refinance add uncertainty. Mitigate these risks by: using conservative ARV estimates (lowest comparable, not highest), adding 20% contingency to rehab budgets, building relationships with no-seasoning lenders, and running stress-test scenarios in this BRRRR calculator.

Key formulas

BRRRR Maximum Allowable Offer Formula:
MAO = (ARV × 70%) - Rehab Costs - Holding Costs - Closing Costs

Example: ($200,000 × 0.70) - $30,000 - $5,000 - $3,000 = $102,000 MAO

Equity Captured Formula:
Equity Captured = Post-Rehab Value - All-In Cost
All-In Cost = Purchase + Rehab + Holding + Closing

Capital Recovery Formula:
Capital Recovery = Refinance Proceeds - Total Cash Invested
Recovery % = (Refinance Proceeds / Total Cash Invested) × 100

Example: $120,000 refi proceeds - $110,000 invested = $10,000 profit + property still owned

Real BRRRR Deal Analysis: From Purchase to Repeat

1. Find distressed property: Listed at $90,000, needs significant work
2. Estimate ARV using comps: Similar renovated homes sell for $160,000
3. Scope rehab: New kitchen ($15K), bathrooms ($8K), flooring ($5K), paint ($3K), mechanicals ($4K) = $35,000 total
4. Calculate MAO: ($160,000 × 0.70) - $35,000 = $77,000 maximum offer
5. Negotiate purchase at $75,000
6. All-in costs: $75,000 purchase + $35,000 rehab + $6,000 holding + $4,000 closing = $120,000
7. Property appraises at $165,000 post-rehab (above estimate!)
8. Refinance at 75% LTV: $165,000 × 0.75 = $123,750 proceeds
9. Capital recovery: $123,750 - $120,000 = $3,750 profit PLUS equity remaining

Recovered 103% of capital, kept $41,250 in equity, property cash flows $300/month. Ready to repeat with the same $120K!

Frequently Asked Questions

What is the BRRRR strategy in real estate?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a strategy where you purchase undervalued properties, renovate them to force appreciation, rent them out for cash flow, refinance to pull out your invested capital, and repeat the process with the recovered funds. This allows you to build a rental portfolio while recycling the same capital.

What's a good ARV percentage for BRRRR deals?

Most successful BRRRR investors aim for an all-in cost (purchase + rehab + holding + closing) of 70-75% of ARV. This leaves room for refinancing at 75-80% LTV and recovering most or all of your initial investment. For example, if ARV is $200,000, your all-in cost should be under $150,000.

How long do I need to wait before refinancing a BRRRR property?

Seasoning requirements vary by lender. Conventional lenders typically require 6-12 months. However, portfolio lenders and DSCR (Debt Service Coverage Ratio) lenders often have no seasoning requirement and will refinance based on current appraised value immediately after rehab. Build lender relationships before you need them.

What if I can't recover all my capital in a BRRRR deal?

Not every BRRRR deal achieves 100% capital recovery—and that's okay. If you recover 80-90% of your capital and keep a cash-flowing property with built-in equity, that's still a great outcome. The key is running accurate numbers upfront so you know exactly how much capital will remain in each deal.

How do I find BRRRR deals?

BRRRR deals come from: foreclosure auctions and tax deed sales, wholesale lists, driving for dollars (finding distressed properties), direct mail to tired landlords, MLS listings that need work (REOs, estate sales), and networking with real estate agents who specialize in investment properties.