What This Calculator Does

This calculator models the full BRRRR cycle in one place: what the purchase and rehab cost in cash, what the stabilized property is worth, what the refinance returns, how much cash stays in the deal, and what the property cash flows after the new loan.

Who It's For

It is for investors using the buy, rehab, rent, refinance, repeat strategy, and for anyone comparing a BRRRR deal against a straight rental purchase. It shows where the cash goes and how much comes back.

What Each Input Means

  • Purchase price and closing costs: the buy side of the cycle.
  • Rehab cost: the renovation budget, ideally from the Rehab Estimator.
  • Stabilized value (ARV): the value after renovation, which drives the refinance.
  • Refinance LTV and closing costs: how much the lender will lend against the stabilized value and what the refinance costs.
  • Rent, vacancy, operating expenses: the inputs for the rental cash flow.
  • New loan rate and term: the refinance loan's payment.

How the Calculation Works

  • Total cash invested = purchase price + purchase closing costs + rehab + refinance closing costs.
  • Estimated refinance loan = stabilized value times the LTV.
  • Cash returned = refinance loan minus refinance closing costs.
  • Cash remaining in deal = total cash invested minus cash returned.
  • Monthly cash flow = effective gross income (rent minus vacancy) minus operating expenses minus the new mortgage payment.
  • Cash-on-cash after refinance = annual cash flow divided by cash remaining in deal.

What the Output Means

The refinance returns cash when the loan exceeds the cash you invested, which happens when the stabilized value supports a loan larger than your total cost. Cash remaining in the deal is the money still at work, and the cash-on-cash return measures how that remaining cash performs. A low or negative remaining balance can mean a very high return on the cash left in, but it also means less margin if values drop.

Common Questions

  • Can I refinance immediately after buying? Lenders often have seasoning requirements, and appraisal timing varies. There is no single rule; ask your lender.
  • What if the refinance loan is less than my cash invested? Then the refinance returns less than you put in, and cash stays in the deal. The calculator shows that outcome honestly.
  • Does this include the purchase financing? The model assumes the purchase and rehab are cash-funded. If you use a bridge or hard money loan, model that separately with the Fix & Flip Calculator.

Limitations

The model assumes the refinance loan equals the LTV times the stabilized value, but lenders use appraisals, their own LTV limits, and their own underwriting. It does not model seasoning requirements, taxes, insurance changes, or the cost of any purchase-stage financing. LTV limits and refinance rules vary by lender and loan program.

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