BRRRR Method Calculator - Advanced Real Estate Investment Analysis

What is the BRRRR Method?

The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is a powerful real estate investment strategy that allows investors to leverage their capital efficiently and scale their portfolios quickly. This approach focuses on value-add properties where you can increase the property's value through strategic renovations and then refinance to pull out your initial investment.

Key Metrics for Success

• Cash-on-Cash Return: Target 12%+ for healthy returns
• After Repair Value (ARV): Accurate valuation is crucial for refinance success
• Refinance LTV: Most lenders offer 70-80% LTV on investment properties
• Monthly Cash Flow: Positive cash flow protects against market fluctuations

State-Specific Considerations

Our BRRRR calculator accounts for state-specific factors including transfer taxes, property tax rates, and insurance costs. Understanding these local factors is essential for accurate investment analysis:

Insurance Considerations: Florida faces the highest insurance premiums ($3,695 annually) due to hurricane risk, while Colorado enjoys the lowest ($1,230). Texas investors benefit from no state income tax but face higher property taxes (1.90%) and moderate insurance costs.

Advanced Tips for BRRRR Success

• Build relationships with local hard money lenders for faster financing
• Develop a reliable contractor network for predictable rehab costs
• Study local market trends to identify high-growth areas
• Maintain reserves for unexpected expenses during holding periods
• Consider 1031 exchanges for tax-deferred growth on subsequent properties