BRRRR Deal Analyzer 2026
BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is the most popular rental scaling strategy. The goal: pull all your cash back out via cash-out refinance and recycle it into the next deal — creating infinite cash-on-cash return.
| Total all-in cost (buy + rehab + closing) | — |
| Refi loan amount (ARV × LTV) | — |
| Cash pulled out at refi | — |
| Cash left in deal | — |
| Monthly P&I payment | — |
| Monthly cash flow after debt service | — |
| Cash-on-cash return (post-refi) | — |
BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is the most popular rental scaling strategy. Goal: pull all cash back via a 70-80% LTV cash-out refi after stabilization, then recycle into the next deal. Done right, you get infinite cash-on-cash return because zero cash remains in the property. Done wrong, you trap 20-40% of acquisition cost and scaling stalls.
The All-In Cost Math
All-in cost = purchase + rehab + acquisition closing + holding cost during rehab. To pull 100% out at refi, all-in must be ≤ 75% of ARV (assuming 75% LTV cash-out). Example: ARV $175K × 75% = $131K refi loan. If you're all-in at $128K (purchase $90K + rehab $35K + closing $3K), you pull out $131K minus $4.5K refi closing = $126.5K. Cash left = $128K − $126.5K = $1.5K. Near-perfect BRRRR.
Why BRRRR Deals Fail
(1) ARV appraisal low: bank appraiser uses conservative comps; build 5-10% cushion. (2) Rehab overrun: 15-25% contingency on contractor scope. (3) Rate spike between buy and refi: stress-test cash flow at +200 bps. (4) Seasoning period: many lenders require 6-12 months of ownership before cash-out refi — your cash is trapped that long. (5) DSCR fails: refi lender requires DSCR ≥ 1.20 on rental income at full debt service.
Last updated May 2026. Sources: BiggerPockets BRRRR Strategy.