EmpireCalc

Phase 2 · Wealth & Leverage

BRRRR Simulator

The whole game is getting your money back out. Model the refinance against your After-Repair Value and see how much capital recycles — and whether the deal still pays you afterward.

Your inputs

Seven levers. The full BRRRR re-solves on every tick.

$150000

What you pay to acquire the property.

$40000

All-in renovation cost.

$260000

Appraised value once rehab is done.

75%

Share of ARV the lender will refinance.

$2400

Gross rent once it's leased.

7%

Rate on the new 30-year loan.

38%

Vacancy, taxes, insurance, upkeep as % of rent.

Cash left in the deal
—
After the cash-out refinance.
All-in cost
—
Refinance loan (LTV × ARV)
—
Monthly cash flow
—
Cash-on-cash
—

Under the hood

The math, fully exposed

BRRRR is two calculations stitched together — a refinance that returns capital, and a rental that must still pay. Both are shown:

All-in cost = purchase + rehab
Refinance loan = ARV × LTV
Cash left in deal = all-in cost − refinance loan
NOI = rent × 12 × (1 − operating expense ratio)
Cash flow = NOI − new debt service (P&I)
Cash-on-cash = annual cash flow ÷ cash left in  (∞ if ≤ 0)
  • The refinance is the payoff: because the loan is based on ARV, forcing the value up through rehab is what lets you pull capital back out. No equity margin, no BRRRR.
  • Infinite return has a cost: the more you pull out, the larger the loan and the heavier the debt service — which can flip a deal cash-flow negative. The art is recycling capital and keeping positive cash flow.
  • Costs not shown: closing, holding and refinance fees aren't modeled here. Treat the 70% rule's 30% buffer as the cushion that absorbs them.

Your directives

What to do next, based on your numbers

Adjust the sliders to generate tailored recommendations.

Answers

Frequently asked questions

What is the BRRRR method?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property below value, renovate it to force appreciation, rent it out, then do a cash-out refinance against the new higher value to pull your invested capital back out — and use that same cash to do it again. Done well, you recycle most or all of your money on every deal.
What is ARV and why does it matter so much?
ARV is the After-Repair Value — what the property is worth once the rehab is done. The refinance is based on ARV, not what you paid, so the gap between your all-in cost and ARV × the lender's LTV is exactly how much cash you can pull back out. A solid ARV margin is the entire engine of BRRRR.
What does an "infinite return" mean?
If the cash-out refinance returns all the money you put in (purchase + rehab), you have zero of your own capital left in the deal — yet you still own a cash-flowing asset. Any positive cash flow on zero invested cash is, mathematically, an infinite cash-on-cash return. It's the BRRRR ideal.
What is the 70% rule?
A screening shortcut: don't pay more than 70% of ARV minus rehab costs. On a $260k ARV with $40k of rehab, that's 0.70 × 260k − 40k = $142k max purchase. The 30% buffer covers closing, holding and refinance costs and leaves the equity margin BRRRR depends on.