Run a buy, rehab, rent, refinance deal end to end: how much cash comes back at the refinance, how much stays in the deal, and whether the rent covers the new mortgage.
Cash left in the deal after the refinance, and what the rental cash flows.
Most DSCR lenders want 1.2 or higher. The refinance is sized on the appraisal, so the ARV is the number that decides whether you get your cash back.
Buy for $120,000, spend $35,000 on the rehab and $3,000 on closing: $158,000 all-in. It appraises at $200,000 and a lender refinances at 75%, a $150,000 loan. After 3% refinance costs ($4,500) you get $145,500 back, leaving $12,500 in the deal.
Rent is $1,900. Vacancy (5%), management (8%) and maintenance plus CapEx (10%) take $437 a month, taxes and insurance another $325, so net operating income is $1,138. The 30-year mortgage at 7% is $998, which leaves about $140 a month of cash flow: $1,680 a year on $12,500, a 13.4% cash-on-cash return, with a DSCR of 1.14.
That DSCR is below the 1.2 most lenders want, so this deal needs either more rent, a lower refinance amount, or a lender with a looser standard. That trade-off is common: a bigger refinance pulls more cash out and makes cash flow thinner.
Everything in BRRRR hangs on the refinance appraisal. If the appraiser comes in $15,000 under your ARV, a 75% loan shrinks by $11,250 and that money stays stuck in the property. Base your ARV on renovated sales near the property in the ARV calculator, and keep the rehab on budget with the rehab cost calculator. For a deeper walkthrough, read the BRRRR method explained.
Last updated: October 2026
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, renovate it, rent it out, then refinance based on the new appraised value to pull your cash back out and use it on the next deal.
Cash-out refinances on investment property usually lend 70-75% of the appraised value. Subtract refinance closing costs (often 2-4% of the loan) and any loan you are paying off. If the result is more than your all-in cost, you got all your cash back.
Many investors look for 10-12% or better on the cash left in the deal. When you recover all your cash, the return is technically infinite, but the property still needs to cash flow after the new mortgage, so check monthly cash flow and DSCR too.
Debt service coverage ratio is net operating income divided by the mortgage payment. DSCR lenders, which many BRRRR investors use for the refinance, typically want 1.2 or higher. Below 1.0 the rent does not cover the loan.
Many lenders require you to own the property for 6-12 months before they will lend on the new appraised value rather than your purchase price. Some DSCR lenders have shorter or no seasoning. Confirm with your lender before you buy, because it changes how long your cash is tied up.
The rest of the deal, covered by the same free tools.
Work out after repair value from your comps, or pull them automatically by address.
Break a renovation into line items and get a repair budget you can defend.
Pull recent comparable sales for any address and see how each one was adjusted.
Turn ARV and repairs into the maximum you should offer on a flip.
Net profit, cash needed, and ROI with financing, holding, and selling costs.
Your max offer to the seller with the assignment fee built in.
The formula, comp selection, adjustments, and the mistakes that cost investors money.