BRRRR calculator: what comes back at the refinance
Most BRRRR calculators assume the refinance gives you 75% of the appraisal. A real DSCR lender also checks seasoning and the rent. This one does both.
PartialDSCR 1.17x
Cash left in the deal
$19,081
You put in $36,081 and the refinance hands back $17,000.
- Bridge loan
- $217,000
- Your cash before refinance
- $36,081
- New 30-year loan
- $240,000
- Sized by
- appraised value
- Pays off bridge
- $217,000
- Refinance costs
- $6,000
- Cash back at refinance
- $17,000
- DSCR on the new loan
- 1.17x
- Rent minus PITIA
- $354
- Cash-on-cash
- 22.3%
Refinance rules from the DSCR program: under 3 months owned, the loan is sized on 80% of cost; after that, 75% of appraised value on a cash-out. Either way it must clear 1.05x DSCR.
The three limits on the refinance
The new 30-year loan is the lowest of these:
- 75% of the appraised value on a cash-out refinance.
- 80% of your cost (price plus documented rehab) if you have owned the property less than 3 months.
- What the rent supports at 1.05x DSCR at the refinance rate, after taxes, insurance and HOA.
The bridge side uses the fix and flip loan structure: up to 90% of the price and all of the rehab, capped at 75% of ARV. The refinance side is the DSCR rental loan. Both are offered through this site, so the same team can line up the exit before you buy.
Questions people ask
What does BRRRR stand for?
Buy, rehab, rent, refinance, repeat. You buy and fix a property with short-term money, lease it, then refinance into a long-term rental loan that pays off the short-term loan and, ideally, returns most of your cash for the next deal.
How soon can I refinance a BRRRR property?
You can refinance before 3 months, but the new loan is then sized on what you paid plus documented improvements (up to 80% of that cost). From month 3 the lender can use the new appraisal, up to 75% of value on a cash-out. Waiting a few weeks can be worth tens of thousands of dollars.
Why did my refinance come in lower than 75% of the appraisal?
Because the rent has to cover the new payment 1.05 times. If it does not at 75% LTV, the loan is cut to whatever the rent supports. The "sized by" line tells you which limit applied.
Can I get all my money back out?
Sometimes. It takes buying and rehabbing well below the finished value. If the refinance hands back more than you put in, cash left in the deal goes negative and the cash-on-cash return shows as infinite.
Numbers look right?
Send the deal. We check it against the lender's terms and come back with a loan.