Guide
BRRRR method step by step
Team RE Underwrite Lab
The five steps
BRRRR is a sequence: buy, rehab, rent, refinance, and repeat. The idea is to repair a rental, refinance it, and see how much of your cash is still stuck in the deal. Repeating is a plan you might have. It is not something the calculator does for you.
Each step depends on a number you do not know for sure yet: the purchase, the rehab, the rent, and whether a lender will refinance at the value and rate you hope for. The page does not find that lender.
Formula
Cash left in the deal is the cash you put in, minus the cash that comes back when the new loan pays off the old one and returns part of your capital. If the new loan is smaller than the cash you have in, cash left in stays positive.
The BRRRR calculator on this site uses the purchase, rehab, after-repair value, and rent you can change in the free form, and it keeps the app's loan, vacancy, and expense defaults for everything else. Those defaults are described on the calculator page. They are not a term sheet.
Example
Example. Use the BRRRR calculator's own default purchase, rehab, value, and rent, then read cash left in, cash back at refinance, and year-1 cash-on-cash. Those three headlines are the example. They move when you change the inputs.
The example is not a house we bought, and the refinance is not a loan that was funded. If a lender's loan-to-value or rate is different, the cash left in the deal is different. Change the inputs in the paid calculator when you have those terms.
Questions
Does BRRRR guarantee I get all my cash back?
No. Cash back depends on the new loan amount versus the cash already in the deal. The calculator shows the result of the inputs. It does not arrange the loan.
What is the difference between BRRRR and a flip?
A flip sells the house. BRRRR keeps it as a rental and looks at a refinance. The fix and flip calculator is the sale version.
Where do vacancy and repairs sit?
In the rental math after the refinance. The free BRRRR page starts from the app defaults and lets you change purchase, rehab, value, and rent.
Is repeat automatic?
No. Repeat means you choose another property later. The calculator analyzes one set of inputs.
Can I treat the default result as a finished deal?
No. The defaults are sample inputs so the formula is visible. They are not a completed project.
Example only. Not financial, investment, legal, tax, lending, or appraisal advice.
Estimates only. Not financial, legal, tax, or investment advice. RE Underwrite Lab calculators and PDF reports provide educational estimates based on the numbers you enter. Actual purchase costs, rents, expenses, financing terms, taxes, insurance, vacancy, rehab costs, refinance eligibility, and returns vary by property, market, lender, and local law (including short-term rental rules). We do not guarantee any outcome, profit, cash flow, or appraisal. Some content and tools may be generated or assisted by artificial intelligence and can contain errors. Always verify assumptions with licensed professionals and your own due diligence before making decisions.