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BRRRR calculator.
Both loans, and the ceiling that actually binds. Most BRRRRs are limited by rent coverage rather than by value, which is the part that leaves capital stuck in the deal.
Your deal, in focus
See how the numbers move.
Adjust the assumptions to explore your deal. Your estimate updates as you go.
Set bridge purchase and rehab financing, capped by loan to ARV. Bridge LTC uses purchase plus rehab, excluding fees. Refinance LTV sizes the rental loan. Points, closing costs, interest, and carry are paid separately. Rental income can limit the refinance below your selected LTV. Check both capital left in the deal and monthly cash flow. Refinance timing, seasoning, cash-out limits, and the bridge facility must be confirmed separately.
Use nonnegative figures. Financing shares and rental expense allowances cannot exceed 100%. Loan limits depend on the value or cost basis shown beside each field.
Assumptions behind this estimate
The refinance is sized by the lower of two ceilings: the LTV against the appraised value, and the largest loan that still holds 1.25 coverage of gross rent over PITIA. The income test is the one that usually binds, and it is the reason a BRRRR leaves capital in the deal. Taxes, insurance and association dues sit in the lender's ratio; vacancy, management and repairs do not, which is why they are entered separately. The bridge rate below is an assumption you can change rather than a quote, since pricing is set by credit, experience and the deal, and the closing-cost fields are your own estimates rather than my terms. Bridge points and carry are editable, opening at 2 points and $400 a month. These are model defaults, not my terms. The bridge loan is the lower of the selected purchase financing plus selected rehab financing, the selected bridge LTV against after repair value, and total purchase and rehab cost. Rehab draws are reserved first; any unfunded purchase or rehab is paid from your cash. Bridge interest uses the funded purchase plus half the funded rehab as an average drawn balance. The refinance uses 30-year amortization and does not model seasoning or cash-out restrictions.
Interest assumes purchase or land funds at closing and an average of 50% of the financed work drawn during the entire hold. Earlier completion or a delay after the final draw increases interest. Draw fees, inspections, extensions, and reserves need to be included in your own cost estimates.
Cash left in the deal
Your numbers at a glance
Each bar compares an amount. Bars are not portions of a total.
Estimate only, based on the figures you entered. Not a quote, an approval, an appraisal or a commitment to lend, and subject to underwriting.
You leave $14,690 in the deal and clear $292 a month, a 23.9% return on the cash still in it.
The modeled loan is limited by value, not income. More rent, lower expenses, or a lower rate may increase supported debt. This is a planning limit, not a lending decision.
Save these numbers, then adjust your inputs above.
Get terms on this deal
Estimate only, based on the figures you entered. Not a quote, an approval, an appraisal or a commitment to lend, and subject to underwriting.
This sends the numbers above straight to me for a person to underwrite. You get an initial written response in 24 to 48 hours, and a straight answer either way. Terms, if offered, are subject to underwriting and approval.
How to read it
What the number means.
A BRRRR is two loans wearing one strategy, and it succeeds or fails on the second one. The refinance is sized by the lower of two ceilings: a percentage of the appraised value, and the largest loan that still holds the required coverage of gross rent over principal, interest, taxes, insurance and any association dues.
The income test is usually the one that binds, and that is the answer to why a BRRRR that looked like it would pull all the capital out leaves a chunk of it behind. A property can appraise beautifully and still not support the loan you wanted, because the rent has to service it.
Taxes, insurance and association dues sit inside the lender's ratio. Vacancy, management and repairs do not, which is why they are entered separately here: they are real costs to you and invisible to the coverage test, and confusing the two is how a property that clears the screen still loses money.
Questions
Understanding your results.
Why does my refinance come back smaller than the value supports?
Because the rent has to cover it. The coverage test caps the loan independently of the appraisal, and on most BRRRRs it is the binding constraint rather than the LTV.
What is left in the deal?
Whatever the refinance did not return of the money you put in, plus anything the carry consumed. A BRRRR that leaves nothing behind is unusual, and a model that predicts it usually has an optimistic rent or an optimistic value in it.
How long before I can refinance at the new value?
That is a seasoning question and it varies by program. It is the single most common thing that turns a good BRRRR into an expensive bridge loan, so it is worth confirming before you buy rather than after.
Should vacancy and management be in the ratio?
Not in the lender's ratio, but absolutely in yours. The coverage test is one screen a file has to clear. It does not tell you whether the property makes money, and it is not on its own a decision to lend.
Method
Where these numbers come from.
BRRRR financing: how the two loans actually fit together
BRRRR needs a bridge loan and a refinance that agree with each other. Here is how the pieces connect, and where the cash gets trapped.
BRRRR seasoning: how long before you can refinance at the new value
Seasoning is the rule that decides whether you get your capital back in month four or month twelve. Confirm it before you buy, not after the rehab is done.
DSCR loan requirements: how the ratio works and what it has to hit
A DSCR loan qualifies the property, not you. Here is how the ratio is calculated, the number it needs to clear, and how to fix a file that misses.
Other tools
The rest of them.
Maximum offer calculator, Rental cash-flow calculator, Cash-out refinance calculator, Hard money loan calculator, Fix and flip calculator, ARV calculator, DSCR calculator, Rehab cost calculator, Construction loan calculator, Rental portfolio calculator, Transactional funding calculator.
This is an estimating tool. It runs arithmetic on the figures you enter using the assumptions stated above, and changing an assumption changes the answer. The result is not a quote, an approval, an appraisal, a valuation, or a prediction of what a property will sell for, and it does not commit anyone to lend. Costs, taxes and market conditions vary by location and change over time. Check the numbers that matter against your own contractor, agent and professional advisers before you commit to a deal.
When the numbers work
Get it underwritten.
A calculator cannot see your property. Estimate only, based on the figures you entered. Not a quote, an approval, an appraisal or a commitment to lend, and subject to underwriting. Send the deal and a person reads it: you get an initial written response in 24 to 48 hours, and a straight answer either way. Terms, if offered, are subject to underwriting and approval. No credit pull to get an answer.