BRRRR Calculator

Buy, rehab, rent, refinance, repeat. The strategy works when the refinance hands back most of your cash and the rent still covers the new loan. This calculator shows both in one view.

BRRRR Calculator. Model a buy, rehab, rent, refinance, repeat deal: all-in cost, cash back at refinance, cash left in the deal, monthly cash flow, DSCR and cash-on-cash return.

How the BRRRR calculator works

  • All-in cost = purchase price + closing costs + rehab + points + interest during the rehab + taxes, insurance and utilities while you hold.
  • Cash needed = all-in cost minus the short-term loan.
  • Cash back at refinance = the new rental loan (ARV × loan-to-value) minus refinance costs minus the short-term loan payoff.
  • Cash left in the deal = cash needed minus cash back. Zero or less means you got all your money out.
  • DSCR = monthly rent ÷ PITIA (principal, interest, taxes, insurance and HOA). Cash flow also subtracts vacancy, management and a maintenance reserve.

Worked example

The calculator opens with this example. Buy at $150,000, put $50,000 into the rehab, and finance 85% of cost at 12% with 2 points for six months. All-in cost comes to $219,750 and you bring $49,750 of cash. The property appraises at $275,000. A 75% loan-to-value refinance at 7.5% pays off the $170,000 short-term loan and returns $32,125 after costs, so $17,625 stays in the deal. At $2,400 a month in rent, the DSCR is 1.32, cash flow is about $151 a month and the cash-on-cash return is 10.3%.

Change any number to match your deal. These figures are example assumptions for discussion purposes only. They are not a Ternus quote or a commitment to lend, and any loan is subject to underwriting, valuation and final approval.

BRRRR questions

What makes a BRRRR deal work?

Buying far enough below after-repair value that the refinance returns most of your cash, and rent strong enough that the new loan still cash flows. Watch the cash-left and DSCR numbers together.

What DSCR do lenders look for on the refinance?

Each lender sets its own minimum, and it can change with leverage and credit. Run your numbers here, then ask a Ternus Account Executive where your deal lands.

Why does the calculator charge interest on the full loan during the rehab?

It is the conservative view. Many rehab loans hold back construction funds and charge interest only on what has been drawn, so your real interest cost may be lower.

Ternus finances the full BRRRR cycle: fix-and-flip and bridge loans for the purchase and rehab, and DSCR rental loans for the refinance. Price your deal in the Loan Sizer or compare flipping with keeping it.