What is the BRRRR method in real estate?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a strategy where investors buy distressed properties, renovate them, rent them out, refinance to pull out their initial capital, and repeat the process to scale a rental portfolio with minimal cash.

How does Arvo calculate cash left in deal after refinance?

Arvo adds up the cash you put in (down payment + 3% buyer closing + rehab), then models a cash-out refinance at 75% of the ARV, where ARV is the median price per square foot of filtered sold comps times the home's square footage. The refi pays off the purchase loan and 2% refi closing costs; whatever it does not return is your cash left in the deal.

Can I use the BRRRR calculator for free?

Yes. The free plan includes 3 full reports a month with ARV, a repair estimate, the refinance math, post-refi cash flow, deal scores and stress tests. No credit card required.

BRRRR Calculator — Arvo | Refi, Cash Left In and Post-Refi Cash Flow

Q: What is the 75% rule in BRRRR?

The 75% rule refers to the typical maximum loan-to-value lenders offer on a cash-out refinance of an investment property: 75% of the appraised After Repair Value. To recover all your capital, your total all-in cost (purchase + rehab + closing + holding) should be at or below 75% of the ARV.

Know how much cash the refi gives back.

Enter any US address and see the ARV from sold comps, a repair estimate, the refinance at 75% of ARV, the cash left in the deal, and whether the rent still carries the new loan.

Arvo analyzes every step of the BRRRR process

Buy

Check the price against the ARV and the 70% max offer before you commit.

Rehab

An AI repair estimate priced at local rates, flagged above $80/sqft. Photo-based on Pro.

Rent

See market rent estimates, cash flow projections, and DSCR before you close.

Refinance

A cash-out refi at 75% of ARV, less 2% refi closing. See exactly how much capital you recover.

Repeat

Scale your portfolio by recycling capital into the next deal, analyzed by Arvo.

Every number you need to underwrite a BRRRR

The BRRRR numbers sit on the same report as the flip and rental math, from the same inputs.

Cash Left in Deal

The most critical BRRRR metric. See exactly how much of your capital stays locked after the cash-out refinance.

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ARV & Refi Modeling

ARV is the median $/sqft of filtered sold comps times the home's square footage. The refinance is fixed at 75% of that ARV, with every intermediate number shown.

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Repair Estimate

An AI estimate from the listing's condition and your notes, priced at local rates and flagged above $80/sqft and $100/sqft. On Pro, upload photos for an itemized estimate.

Post-Refi Cash Flow

Cash flow and DSCR on the refi loan you keep, not the purchase loan you pay off. The refi uses the same rate and term as your purchase loan.

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BRRRR Score (0-100)

Computed only from financial metrics: equity recaptured (35%), post-refi DSCR (20%), added value (20%), post-refi cash-on-cash (15%) and post-refi cash flow (10%).

PDF Export

Export the full report for a lender or private money partner. Included on Solo, Pro and Team; Pro and Team add your logo.

How the BRRRR method actually works

The BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — is how investors build a rental portfolio without tying up fresh cash in every deal. The magic is in the refinance: if you force enough value through renovation, a cash-out refinance can return most or all of your original investment, freeing that capital to do it again. A good BRRRR calculator tells you, before you buy, exactly how much of your money you'll get back.

Buy below value, then force appreciation

BRRRR only works on properties you can buy under market and improve. Like a flip, the deal hinges on the After Repair Value (ARV) — the appraised value once renovations are complete — because your refinance loan is sized against that number, not your purchase price. Buy at a price plus rehab that lands well below ARV and you create the equity the refinance will tap.

The number that makes or breaks BRRRR: cash left in the deal

Most lenders will refinance an investment property at 70–75% loan-to-value (LTV) of the appraised ARV; Arvo models 75%. Your goal is for that loan to cover everything you put in. The defining BRRRR metric is your cash left in the deal:

All-In Cost = Purchase + Rehab + Buyer Closing
Refinance Loan = ARV × 75%
Net From Refi = Refinance Loan − Refi Closing Costs (2%)
Cash Left in Deal = All-In Cost − Net From Refi

If the net from the refinance equals or exceeds your all-in cost, you've pulled out 100% of your capital — an "infinite return" BRRRR. If cash is left in the deal, that's the capital you can't recycle into the next purchase, so you want it as low as possible while still keeping the property cash-flow positive.

Worked example: a 75% LTV BRRRR refinance

Purchase price	$120,000
Rehab budget	$40,000
Buyer closing (3% of price)	$3,600
Total all-in cost	$163,600
After Repair Value (ARV)	$230,000
Cash-out refinance @ 75% of ARV	$172,500
Refi closing costs (2%)	−$3,450
Net from refi	$169,050
Cash left in deal	−$5,450

These are the engine's numbers for this deal with 20% down at purchase. The negative result means the refinance returns $5,450 more than the investor put in. Put the other way round: the $67,600 of cash in (a $24,000 down payment, $3,600 closing and $40,000 rehab) comes back as $73,050 once the refi has paid off the $96,000 purchase loan and its own closing costs. At $1,800/mo rent and 7%, the $172,500 refi loan leaves about $13/mo of cash flow after reserves (DSCR 1.05) — capital recovered, but barely carrying the new loan.

Rent and refinance: don't forget cash flow

Recovering your capital is only half the equation. After the refinance, your mortgage is larger than a standard purchase loan, so the property must still cash-flow at the post-refi payment. Always check that market rent covers the new mortgage plus taxes, insurance, vacancy, maintenance, and management — a BRRRR that pulls out all your cash but bleeds $200/month isn't a win. Arvo models both the capital recovery and the post-refinance cash flow on every deal, then scores the two together. See a sample report or run your first BRRRR free.

Related calculators: Fix and flip analyzer · Rental property analyzer · Wholesale deal math

Common BRRRR questions

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You purchase an undervalued property, renovate it, rent it out, refinance to recover your capital, then use that capital to buy the next property. The goal is to scale a rental portfolio while recycling the same initial investment.

Arvo adds up the cash you put in (down payment + 3% buyer closing + rehab), then models a cash-out refinance at 75% of the comp-based ARV. The refi pays off your purchase loan and 2% refi closing costs, and what it returns comes off your cash in. A negative number means you pulled out more than you put in.

Arvo models a 75% LTV cash-out refinance with 2% refi closing costs, at the same rate and term as your purchase loan. The LTV is fixed; if your lender offers something different, adjust the refi amount by hand.

Yes. The free plan includes 3 full reports a month with all financial metrics, the refinance math, deal scoring and stress tests. No credit card needed.

Upfront you typically need to cover the purchase, rehab, and closing/holding costs — often financed with a hard-money or private loan plus 10–20% of your own cash. The goal of BRRRR is to recover most of that cash through the cash-out refinance, leaving as little as possible "stuck" in the deal. A well-structured BRRRR can return nearly 100% of your invested capital, which is why investors can scale on a small amount of money.

The 75% rule refers to the typical maximum loan-to-value (LTV) lenders offer on a cash-out refinance of an investment property: 75% of the appraised After Repair Value. To recover all your capital, your total all-in cost (purchase + rehab + closing + holding) should be at or below 75% of the ARV. Arvo models the refinance at 75% of ARV.

BRRRR can still be highly profitable, but higher interest rates make the post-refinance cash flow tighter, so underwriting matters more than ever. The key is buying with enough of a spread between your all-in cost and the ARV, and confirming the property still cash-flows at today's refinance rates. Arvo shows the post-refi cash flow and DSCR at the rate you enter, so you can see whether the rent carries the new loan before you overpay.