BRRRR & Fix-and-Flip Calculator

Buy it broken. Fix it. Sell it — or keep it.

Two very different strategies for the same distressed property: refinance and hold (BRRRR), or renovate and sell (flip). See what each one actually nets you.

Why this matters

Buy-and-hold investors run cap rate math. This is a different game entirely — you're buying something rough on purpose, putting real money into fixing it, and betting the after-repair value covers everything you spent plus a profit. Get the math wrong here and rehab costs alone can wipe out the deal.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) means you fix it up, rent it out, then refinance based on the new higher value — pulling your original cash back out so you can do it again. The goal is getting as much of your capital back as possible while keeping the property.

Flipping is simpler: fix it up, sell it, keep the difference. No refinancing, no landlord responsibilities — but also no ongoing cash flow, and you're fully exposed to the sale price you actually get.

The number that makes or breaks either strategy is the after-repair value (ARV) — what the property will actually be worth once the work is done. Overestimate that, and everything downstream is wrong.

You keep the property. The goal: refinance for enough to pull your cash back out.

The Deal

Purchase price

Rehab budgettotal renovation cost, not monthly

Holding coststotal for the whole rehab period, not monthly

After-repair value (ARV)

Refinance LTV% of ARV a lender will loan — typically 70–80%

Original loan payoff at refiyour remaining mortgage balance when you refinance

Left-In Capital

Workable — some capital stays tied up

$249,500

of your own cash still tied up after refinancing

Total cash invested$333,000

Refinance loan (75% of ARV)$307,500

Original loan payoff$224,000

Cash-out at refinance$83,500

$249,500 of your cash stays tied up in this property after the refinance — not a full recycle, but still building equity.

What these numbers mean

Refinance LTV

"Loan-to-value" — the percentage of the property's new, after-repair value that a lender is willing to loan you when you refinance. Lenders typically cap this around 70–80% for rental properties, keeping some equity as their cushion. A higher LTV means more cash back in your pocket at refinance, but a smaller margin of safety if the ARV estimate turns out to be optimistic.

ARV

After-repair value — what the property will be worth once renovations are complete. This is usually the hardest number to get right; it should come from real comps of renovated properties nearby, not a guess.

Left-in capital (BRRRR)

How much of your own cash is still tied up in the property after you refinance. Zero or negative means you got all your money back (or more) — the deal effectively recycles itself.

Net profit / ROI (Flip)

What's left after the sale, once you subtract the purchase price, rehab, holding costs, and selling costs (agent commission, closing costs) — measured against the cash you put in.

Estimates for planning purposes only — not financial advice. ARV should come from real comparable sales, not a guess — the accuracy of this whole calculation depends on it.

Why this matters