Refinancing can return cash without producing a rental that pays for itself. This BRRRR calculator keeps those decisions separate: what the project costs, how much cash the refinance releases, what remains invested and what the rental produces after its new payment. The starting numbers are invented, not a Homebase deal or loan offer.
TL;DR
- Include purchase, rehab, contingency, buying, holding and financing charges before calculating how much cash the project ties up.
- Net refinance proceeds equal the new loan minus old debt payoff and refinance closing costs. Borrowed cash is not project profit.
- Check rental cash flow separately. Recovering much of your original cash can still leave you with a monthly shortfall.
- Treat value, loan-to-value, rate and closing date as assumptions until the lender confirms the actual requirements. This calculator does not approve a loan.
What does BRRRR mean here?
BRRRR means buy, rehab, rent, refinance and repeat. BiggerPockets' introduction describes that sequence. The repeat step depends on both available cash and a rental you can carry; a refinance does not make either result automatic.
Unlike the house-flip calculator, this tool does not assume a sale. It models cash invested before refinancing, cash released at closing and ongoing rental cash flow. Equity is shown separately from cash and realized profit.
Count project costs before counting borrowed money
Project cost equals purchase price + rehab + rehab contingency + buying costs + monthly pre-refinance costs × months + financing charges before refinance. The full contingency is counted as a cost allowance. Rehab includes actual labor and material cash outlays, not an imputed cost for unpaid owner time. Financing charges include interest, points and fees, not principal repayment. Put each charge in one input only.
Cash invested before refinance equals that project cost minus acquisition debt. This simplified funding model assumes all entered acquisition debt funded the entered project costs and remains outstanding at refinance. It does not model prior principal repayments, draw timing, rent received before refinancing or distributions. If those occurred, reconcile a separate actual cash ledger rather than forcing the numbers to fit. Debt above total modeled cost is rejected.
The cash-invested output is not the maximum cash needed during construction. A delayed reimbursement or rehab draw can create a temporary funding gap even when the final totals work. Use the rehab-loan cash-gap guide alongside your funding schedule.
How much cash does the refinance release?
The modeled new loan equals refinance value × loan-to-value percentage. Net refinance proceeds equal that loan minus acquisition debt payoff and refinance closing costs. A negative number means additional cash is needed at closing, not that the shortfall disappears.
Cash left in the deal equals cash invested before refinance minus net refinance proceeds. Under this model, the same result is project cost + refinance costs − new loan. Changing only the acquisition-debt input changes when your cash is used, not this final amount.
A negative cash-left result means the refinance returned more than the modeled cash investment. It does not mean you sold the property or realized that amount as profit. You still owe the new loan. Modeled equity is refinance value minus new loan; sale costs and taxes are not deducted.
Rental cash flow uses the new loan payment
Collected monthly rent equals scheduled rent × (1 − vacancy and collection percentage). Subtract rental operating costs and reserves, then subtract the new monthly principal-and-interest payment.
Put taxes, insurance, management, maintenance, capital reserves, utilities and HOA costs in the rental-cost input as applicable. Do not include vacancy or mortgage payments there again. Separate ongoing rental costs from the holding costs incurred before refinance.
The payment assumes a fixed-rate, fully amortizing loan with monthly payments. With monthly rate r, principal L and n monthly payments, payment = L × r ÷ [1 − (1 + r) raised to −n]. At zero interest, payment = L ÷ n. A zero-dollar loan has no payment. Interest-only periods, balloons, adjustable rates and lender debt-service tests are not modeled.
Annualized rental cash flow is monthly cash flow × 12, assuming unchanged inputs. Post-refinance cash-on-cash return is annualized cash flow ÷ positive cash left in the deal. When cash left is zero or negative, the percentage displays “Not defined,” not an infinite return. This is not a total-return calculation: appreciation, tax effects, loan amortization gains and a future sale are excluded.
An invented example: cash comes back, but the rental loses money
The starting example uses a $150,000 purchase, $40,000 rehab, 10% contingency, $5,000 buying costs, six months of $1,000 holding costs and $12,000 in financing charges. Acquisition debt is $160,000. Refinance assumptions are $280,000 value, 75% loan-to-value, $6,000 closing costs and a 7% fixed rate amortized over 30 years.
Rental assumptions are $2,200 scheduled monthly rent, 5% vacancy/collection allowance and $700 monthly rental costs and reserves.
| Result | Invented starting example |
|---|---|
| Project cost before refinance | $217,000 |
| Cash invested before refinance | $57,000 |
| New refinance loan | $210,000 |
| Net refinance proceeds | $44,000 |
| Cash left in the deal | $13,000 |
| Monthly principal and interest | $1,397.14 |
| Collected monthly rent | $2,090 |
| Monthly rental cash flow | −$7.14 |
| Annualized rental cash flow | −$85.62 |
| Post-refinance cash-on-cash return | −0.7% |
| Modeled equity | $70,000 |
The $44,000 returned at refinancing does not cure the rental's shortfall. If loan-to-value falls to 65% with everything else unchanged, the loan becomes $182,000 and cash left increases to $41,000. That smaller loan reduces the monthly payment, but you must fund the larger amount remaining invested. Test lower value, lower rent, higher costs and a longer pre-refinance hold rather than judging the deal by cash recovery alone.
Verify the refinance before relying on the date
Actual lender terms may constrain the loan by more than value and loan-to-value. Ask about appraisal treatment, ownership and mortgage seasoning, borrower qualifications, reserves, rental-income treatment, property condition, fees and any other loan-specific requirements.
For example, Fannie Mae's cash-out refinance guide generally requires an existing first mortgage being paid off to be at least 12 months old and at least one borrower to have held title for six months, with specified exceptions and additional requirements. Its delayed-financing exception has its own documentation and loan-amount restrictions. Those rules are specific to that program, not universal terms for every investment-property lender. The six-month hold in this arithmetic example is not a claim that the example qualifies for a Fannie Mae refinance.
Start with supported after-repair value evidence, realistic rental comps, a repair scope and written financing terms. Then connect those requirements to your investor buy box. Homebase's method describes its mailing role, not a promise of a profitable purchase or loan approval.
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