BRRRR Calculator
Buy, rehab, rent, refinance, repeat. See how much cash comes back out at the refinance and how much stays in the deal.
- Step 1 covers the purchase and rehab with a short-term loan
- Step 2 refinances into a long-term DSCR rental loan
- Shows cash back, cash left in and how the rent covers the new payment
Your estimate
Estimates only. Not financial, tax or legal advice, not a loan offer or commitment to lend, and not a guarantee of results. Rates and costs shown are examples or numbers you entered, not Beltway Lending's rates or terms. Actual terms depend on the property, the borrower and the loan program.
Step 1: buy and rehab
- Short-term loan = purchase price x % financed + rehab budget x % financed.
- Dutch interest = loan x rate / 12 x months.
- Non-Dutch interest = the purchase part of the loan x rate / 12 x months, plus interest on rehab funds only after they are drawn. We assume the rehab money is drawn in equal parts at the end of each month of the draw period.
- Points = loan x points %. Holding costs = monthly holding cost x months.
- Cash at purchase closing = purchase price - purchase loan + closing costs + points.
- Total cash in = cash at purchase closing + rehab you pay yourself + interest + holding costs. We assume interest is paid monthly and the loan balance is paid off in full at the refinance.
Step 2: rent and refinance
- Refinance loan = ARV x refinance LTV %.
- Net cash out = refinance loan - short-term loan payoff - refinance closing costs. A negative number is cash you would bring to the refinance closing.
- Cash left in the deal = total cash in - net cash out. Zero or less means all of your cash came back, so cash-on-cash return is not shown.
- Equity = ARV - refinance loan.
- Monthly principal and interest = L x r / (1 - (1 + r)^-n), where L is the loan, r is the yearly rate / 12, and n is 360 or 480 months.
- PITIA = principal and interest + taxes + insurance + HOA dues.
- DSCR = monthly rent / PITIA. This is the gross rent method Beltway uses: vacancy and management are not taken out. Bands: under 1.00, 1.00 to 1.19, and 1.20 and up.
- Monthly cash flow = rent - vacancy - management - other monthly costs - PITIA.
- Cash-on-cash return = yearly cash flow / cash left in the deal.
Not included: income taxes, depreciation, rent growth, value changes, capital gains, prepayment penalties, reserves a lender may require, and rehab cost overruns. Seasoning (how long you must own the property before a cash-out refinance) depends on the deal and the lender. Beltway Lending has options with little or no seasoning on the right deal. Ask us about yours.
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