BRRRR Property Calculator
Analyze real estate investments using the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat)
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What is the BRRRR Method?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investment strategy that allows investors to build a rental property portfolio by recycling their capital. The method involves purchasing distressed properties below market value, renovating them, renting them out, refinancing to pull out your initial investment, and then repeating the process with another property.
The 5 Phases of BRRRR
1. Buy
Purchase a distressed property below market value, typically aiming for 70-75% of the After Repair Value (ARV) minus renovation costs.
2. Rehab
Renovate the property to increase its value and appeal to tenants. Focus on improvements that maximize ARV while controlling costs.
3. Rent
Secure quality tenants to generate passive income and demonstrate the property's cash flow potential to lenders.
4. Refinance
Obtain a new loan based on the property's increased value (ARV), allowing you to pull out your initial capital and equity.
5. Repeat
Use the recovered capital to purchase another property and restart the cycle, scaling your rental portfolio.
Benefits of BRRRR
- Build wealth through forced appreciation by improving property value
- Recycle capital to acquire multiple properties with the same initial investment
- Generate passive income from rental properties
- Build equity and long-term wealth through property ownership