Fixer Upper House
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BRRRR calculator

Buy, rehab, rent, refinance, repeat. See how much cash the refinance hands back, how much stays in the house, and what the rent leaves you each month. No signup.

Buy and rehab
$
$
$
$

Loan interest, taxes, insurance, utilities.

$

What the refinance appraisal should come in at.

$

Hard money or purchase loan. 0 if you paid cash.

Rent
$
%

Share of the year it sits empty. 5% is about 18 days.

$
$
$
%

Percent of rent. 0 if you manage it.

%

Percent of rent set aside for upkeep.

%

Roof, furnace, water heater over time.

Refinance
%

Cash-out refinances often allow 70 to 80%.

%
years
$

How BRRRR works

What is the BRRRR method?

Buy a house below its value, rehab it, rent it out, refinance into a long-term loan based on the new appraisal, then repeat with the cash the refinance hands back. Done well, little or none of your money stays in the house, and the rent pays the new loan.

How is the cash left in the deal worked out?

Everything it cost you to get the house rented (purchase, closing costs, rehab, holding, and the refinance's closing costs) minus the new loan. If the new loan is larger, you got all your cash back and then some, and the cash-on-cash return is unlimited.

What loan-to-value can I refinance at?

It depends on the lender and the loan. Cash-out refinances on investment property are commonly limited to about 70 to 80% of the appraised value, and many lenders want you to have owned the house for a while (often 6 to 12 months) before they'll lend on the new value instead of what you paid. Ask your lender before you buy.

What's DSCR and why does it matter?

Debt service coverage ratio: the rent left after running costs (net operating income) divided by the loan payment. Many rental lenders, especially DSCR loans that don't use your personal income, want 1.0 to 1.25 or more. Below 1.0, the rent doesn't cover the payment.

Why set aside money for repairs and big repairs if nothing's broken?

Because things will break, and roofs, furnaces, and water heaters wear out on a schedule. Budgeting a percent of rent for both keeps a good month from looking better than the house really is. 5% each is a common starting point; older houses need more.