See all-in cost, refi cash-out at 75% of ARV, capital left in the deal, monthly cash flow, and the cash-on-cash return on whatever capital remains trapped. Live calc as you type.
The BRRRR strategy lets a fixed cash base build a rental portfolio by recycling capital through forced appreciation. Each step has a specific number it cares about:
Acquire below market — distressed, dated, or otherwise structurally undervalued — typically with cash or a short-term fix-and-flip bridge loan. Acquisition closing costs, hard-money points, and the first few months of holding (utilities, taxes, insurance) all land in the "holding + acquisition" line of the calculator above.
Renovate to a target After-Repair Value (ARV). The single highest-impact lever in a BRRRR is the spread between all-in cost and ARV. Tight rehab budgets (with 10–15% contingency) and disciplined comp selection keep this spread real. Over-budget rehabs are the #1 reason BRRRR refis leave too much cash trapped.
Lease the property at market rent. Long-term lease beats projection for refi underwriting. DSCR underwriting will use the lower of lease rent and appraiser-determined market rent — so leasing at or above market protects the refi DSCR.
After the typical 6-month seasoning period, refinance into a long-term loan — usually a DSCR cash-out at 75% of the new appraised value. The refi loan minus refi closing costs is the cash you recover. That cash, plus your DSCR-qualifying rental, is the foundation of the repeat.
Roll the recovered capital into the next acquisition. The discipline is that each deal must (a) be a real BRRRR — not a slow buy-and-hold dressed up — and (b) operate at positive cash flow even after a stress-tested vacancy and repair reserve. A BRRRR that leaves capital trapped AND operates negative is a losing deal, not a winning one.
Running a specific deal? Call (903) 402-5626 — we structure investor files weekly.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Acquire an undervalued or distressed property (typically with cash or hard money), renovate it to its After-Repair Value, rent it, then refinance into long-term financing at the new appraised value. The refi recovers most or all of the cash invested, and that recycled capital becomes the down payment on the next deal. Done well, BRRRR lets a finite cash base build a rental portfolio without re-raising equity for each acquisition.
A perfect BRRRR is one where the refi cash-out equals or exceeds the total cash invested — cash left in the deal is $0 or negative. This requires acquiring well below market, executing rehab on budget, and ARV appraising into the refi-LTV math (75% × ARV ≥ all-in cost). Perfect BRRRRs happen but are not the norm — most well-run BRRRRs leave $5K–$25K in the deal, which is still a strong outcome relative to a traditional buy-and-hold leaving 20–25% of purchase price tied up.
Three structural failure modes. (1) ARV miss: the appraisal comes in below your model so the refi loan is smaller and more capital stays trapped. Mitigate with conservative comp selection. (2) Rehab over-budget: $60K instead of $40K — all-in shoots up, cash-on-cash craters. Mitigate with line-item rehab budgets and 10–15% contingency reserves. (3) Negative cash flow after refi: rent does not cover new debt service + opex. Stress-test rent against opex plus new P&I before writing the offer.
Most DSCR cash-out refi programs require 6 months of seasoning — you must have owned the property for at least 6 months before refinancing into the new value. A handful of "delayed financing" programs allow refi before the 6-month mark, capped at the lower of original purchase price or current appraised value, which limits how much cash you can pull out. For a clean BRRRR sequence, plan on 4–6 months from acquisition through rehab to the refi closing.
Texas property taxes (~2% effective) are roughly double the national average, which loads opex and pushes the rent-to-price ratio you need higher. On the other hand, Texas has no state income tax (so net-of-tax cash flow looks better), and DFW, Houston, San Antonio, and Austin all have strong rental demand. Structural BRRRR submarkets in Texas include Oak Cliff and East Dallas in DFW, Houston Heights and EaDo, San Antonio inside-410, and East Austin pre-displacement neighborhoods.
Cash buys with the cleanest leverage on the BRRRR refi (no acquisition debt to pay off), but ties up substantial capital during the rehab months. Hard money or a fix-and-flip bridge loan keeps cash freed up, but adds points and interest carry to your holding costs. For investors with sufficient liquidity, cash typically wins on cost; for investors building a portfolio with limited cash, hard money lets the strategy scale faster despite the carry cost. We finance both sides via fix-and-flip bridge loans into DSCR cash-out refis.
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We finance both sides of the BRRRR — fix-and-flip bridge for the acquisition + DSCR for the refi. Send the scenario, we'll structure both with terms.