BRRRR Deal Scenario Calculator
Estimate modeled cash in, gross refinance cash out, and rental operating income from your purchase, renovation, financing, rent, and expense assumptions.
How to use the scenario
Enter the purchase price, renovation cost, after repair value, down payment percentage, purchase closing cost percentage, refinance loan to value percentage, monthly rent, and monthly operating expenses. Use the same currency for every amount. The page calculates a 70% offer screen, modeled cash in, original loan, gross refinance cash out, NOI, and two annual NOI ratios.
Review the input assumptions with the calculated amounts. The phase table repeats selected inputs and outputs for purchase, renovation, rent, refinance, and potential capital recycling. The repeat row shows the same gross cash out amount; it does not model another purchase.
The offer screen applies the 70% heuristic to after repair value and subtracts renovation cost. Cash in includes only down payment, purchase closing costs, and renovation cost. Add other operating costs to monthly expenses when appropriate; there are no separate inputs for holding costs or refinance costs.
The refinance estimate applies the entered loan to value percentage to after repair value, then compares the new loan with the original loan. It shows gross cash out or the additional cash needed to pay off the original loan. It assumes the original loan has not amortized and does not calculate lender qualification or refinance expenses.
Step by step
- Enter purchase and renovation assumptions
- Enter refinance terms, rent, and operating expenses
- Review modeled cash, NOI, and annual NOI ratios
Worked example
Assume a purchase price of 120,000, renovation cost of 30,000, after repair value of 200,000, 20% down payment, 3% purchase closing costs, and a refinance loan to value of 65%. Enter monthly rent of 2,000 and monthly operating expenses of 800. All amounts use the same currency units.
The model gives a 110,000 offer screen, 57,600 modeled cash in, a 96,000 original loan, and 34,000 gross refinance cash out before refinance costs. Monthly NOI is 1,200. Annual NOI is 14,400, or 25% of modeled cash in. With 23,600 of modeled cash left after refinance, annual NOI is 61.02% of that balance. This ratio is before debt service and is not a cash on cash return.
When to use this calculator
Use this calculator to examine a simplified Buy, Rehab, Rent, Refinance, Repeat scenario from property and financing assumptions. It reports modeled amounts, not a valuation or loan offer.
A BRRRR sequence depends on renovation results, rental operations, lender terms, refinance costs, and timing. Several of those details are outside this model, so treat the outputs as a starting scenario for further review.
Common interpretation errors
Do not treat the 70% offer screen as a safe price or lending rule. It is an illustrative heuristic and can produce no positive offer when renovation cost exceeds 70% of after repair value. Check that monthly expenses represent the costs you intend to include, and remember that NOI excludes debt service.
Gross refinance cash out is not the amount of cash you recover after refinance costs. The phase labeled for repeating a project repeats the same cash out figure and does not project a second property or future return.
How the scenario is calculated
Offer screen = 70% × after repair value − renovation cost.
Modeled cash in = purchase price × down payment rate + purchase price × closing cost rate + renovation cost.
Original loan = purchase price × (1 − down payment rate). Refinance loan = after repair value × refinance loan to value. Gross cash out = max(0, refinance loan − original loan). Refinance shortfall = max(0, original loan − refinance loan).
Cash left after refinance = modeled cash in + refinance shortfall − gross cash out. Monthly NOI = monthly rent − monthly operating expenses. Annual NOI = monthly NOI × 12.
The 70% offer screen is an illustrative heuristic, not a safe price or recommendation. Gross cash out excludes refinance costs and assumes no reduction in the original loan balance. The annual NOI ratios use NOI before debt service and are not cash flow returns after mortgage payments. Each ratio is unavailable when its denominator is zero or negative.
Assumptions and limits
This is a simplified scenario calculation, not a property valuation or financing quote. The offer screen uses the illustrative 70% after repair value heuristic and subtracts renovation cost. It is not a maximum safe offer. Modeled cash in includes down payment, purchase closing costs, and renovation cost only. Gross refinance cash out and any additional cash needed to pay off the original loan are modeled, but refinance costs are excluded. The original loan balance is assumed unchanged. NOI excludes debt service. The annual NOI ratios are not cash flow returns after mortgage payments and are unavailable when the relevant cash denominator is zero or negative. Vacancy, holding costs, property taxes, insurance, capital repairs, loan qualification, timing, and changing rents or values are not modeled separately.
Key terms
- After repair value
- After repair value is the estimated property value after renovation entered by the user. The calculator does not appraise or validate it.
- Monthly NOI
- Net operating income here is monthly rent minus the entered monthly operating expenses. It is before debt service and is not a full property cash flow statement.
- Gross refinance cash out
- Gross cash out is the positive difference between the modeled refinance loan and original loan. If proceeds are lower than the original loan, the model shows the additional cash needed to pay it off. Refinance costs are excluded and the original balance is assumed unchanged.
Related calculations
Compare the modeled purchase, renovation, rent, and refinance amounts with other property calculations when you need a separate view of yield or housing costs.
The Cap Rate Evaluator uses net operating income and property value. This tool starts from purchase price, renovation cost, rent, and operating expenses. The results answer different questions and are not interchangeable.
FAQ
How is the offer screen calculated?
The 70% calculation is 70% of after repair value minus renovation cost. It is an illustrative screening heuristic, not a maximum safe offer or a recommendation. It does not account for purchase costs, holding costs, financing, or a lender's valuation.
What is included in modeled cash in?
Modeled cash in is the down payment on the purchase price plus purchase closing costs and renovation cost. The original loan is the unpaid portion of the purchase price implied by the down payment percentage. Holding costs, interest during renovation, and refinance costs are not included. There is no separate input for refinancing costs.
How does the refinance cash out estimate work?
The refinance loan is after repair value multiplied by the refinance loan to value percentage. Gross cash out is the refinance loan minus the original loan when that difference is positive. If the new loan is smaller, the shortfall is the amount needed to pay off the original loan. Remaining modeled cash adds that shortfall to cash in and subtracts gross cash out. The original loan balance is assumed unchanged, and refinance costs are excluded.
Are the displayed return ratios cash on cash returns?
Monthly NOI is monthly rent minus the monthly operating expenses you enter. Annual NOI is monthly NOI multiplied by twelve. Debt service is excluded from NOI. The displayed annual NOI ratios divide by modeled cash in or modeled cash left after refinance. They are not cash flow after mortgage payments. A ratio is unavailable when its cash denominator is zero or negative.
What costs or refinance conditions are not modeled?
No. This calculator shows arithmetic from your inputs. It does not model vacancy separately, loan payments, taxes, insurance, capital reserves, rent changes, property value changes, refinance fees, lender requirements, or the timing of a renovation. Include only costs that fit the expense input and evaluate other costs separately.
Related tools
The Cap Rate Evaluator calculates a separate yield using net operating income and property value. Rent vs Buy compares a housing choice with renting and investing. Their outputs use different inputs and definitions from this scenario.