Rental Property ROI & BRRRR Calculator
Financial CalculatorsHow the logic works
We calculate your Total Money In by summing the purchase price, closing costs, and rehab budget. After renovation, the New Loan is calculated as 75% of your ARV ($300,000). The difference is your Cash Left in Deal. If this number is zero or negative, you've achieved a "Perfect BRRRR" and have infinite ROI!
Cash Left in Deal
Initial Capital Tied Up
Monthly Net Cash Flow
Profit after all expenses
Cash-on-Cash ROI
Annual Return on Equity
Equity Created
Wealth boost from rehab
Capital Recirculation
Monthly Cash Flow Split
Rental Property Analysis Report
Professional Investment Analysis
November 9, 2026
Purchase & Rehab
| Purchase Price | $200,000 |
| Closing Costs | $5,000 |
| Rehab Budget | $40,000 |
| Holding Costs | $3,000 |
| Total Investment | $248,000 |
Strategy & Refinance
| Market Value (ARV) | $300,000 |
| New Loan Amount (75%) | $225,000 |
| Interest Rate | 6.5% |
| Loan Term | 30 Years |
| Monthly Rent | $2,500 |
Operating Expenses
| Mortgage P&I | $1,422 |
| Taxes & Insurance | $350 |
| Maintenance & CapEx | $250 |
| Management | $200 |
| Vacancy | $125 |
| Total Operating Expenses | $925 |
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How to Use the Rental Property & BRRRR Strategy Calculator
Step-by-step guide to analyzing rental cash flow, capitalization rate (Cap Rate), and BRRRR equity recycling.
Enter Buy & Acquisition Costs
Input initial purchase price, down payment, upfront closing costs, and mortgage loan terms.
Estimate Rehab & Holding Expenses
Specify total renovation budget and holding costs (utilities, loan interest during construction) before tenant placement.
Project Rental Income & Operating Expenses
Enter gross monthly rent, expected vacancy rate (e.g. 5%), property management fees, taxes, insurance, and CapEx reserves.
Simulate Cash-Out Refinance (BRRRR)
Enter the After Repair Value (ARV) and refinance loan-to-value (LTV) to calculate how much capital you recover tax-free.
Analyze Net Cash Flow & Cash-on-Cash ROI
Review monthly net operating income (NOI), monthly net cash flow, cap rate, and Cash-on-Cash Return on remaining invested capital.
Export PDF Investment Memo
Generate a clean, bank-ready PDF investment underwriting report summarizing deal metrics for lenders or partners.
Frequently Asked Questions
Answers regarding rental property underwriting, the BRRRR method, Cap Rates, and cash-on-cash metrics.
Q:What is the BRRRR Method in real estate investing?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Investors purchase distressed properties below market value, renovate them, lease them to creditworthy tenants, and execute a cash-out refinance based on the higher appraised ARV to pull out original capital.
Q:What is the difference between Cap Rate and Cash-on-Cash (CoC) Return?
Cap Rate (NOI / Purchase Price) evaluates property yield independent of financing structure. Cash-on-Cash Return (Annual Pre-Tax Cash Flow / Total Out-of-Pocket Cash Invested) measures the actual cash return on your leveraged equity.
Q:What is a "Perfect BRRRR"?
A "Perfect BRRRR" occurs when the new cash-out refinance loan repays 100% of your initial purchase, rehab, and holding costs, leaving $0 of your own cash in the property while retaining positive monthly cash flow.
Q:What should I reserve for Vacancy and Capital Expenditures (CapEx)?
Underwriting standards recommend setting aside 5% to 8% of gross rent for vacancy and another 5% to 10% for CapEx (long-term replacements like roof, HVAC, appliances).
Q:How does After Repair Value (ARV) affect refinancing?
Commercial and portfolio lenders typically lend 70% to 75% of the newly appraised ARV. If your total project cost is less than 75% of ARV, you can retrieve virtually all invested cash.
Q:Is Cash-Out Refinance proceeds taxable?
In most jurisdictions, loan proceeds from a cash-out refinance are considered borrowed debt, not income, and are therefore received tax-free.
- ARV: Estimated market value after all renovations are complete.
- Annual Cash Flow: Net profit after all expenses multiplied by 12.
- Total Investment: Sum of purchase price, closing costs, and rehab.
What is Rental Property ROI & BRRRR Calculator?
Practical Calculation Example
The BRRRR Lifecycle
| Investment Phase | Financial Action | Strategic Objective |
|---|---|---|
| Buy | Acquire distressed asset under market value. | Secure a high intrinsic margin of safety; typically requires short-term, high-interest capital. |
| Rehab | Deploy strategic capital expenditures. | Force equity appreciation and elevate the asset to maximize potential rental yield. |
| Rent | Secure long-term tenant placement. | Stabilize the asset to generate consistent Net Operating Income (NOI) required to service future debt. |
| Refinance | Execute conventional long-term mortgage. | Liquidate the "forced equity" based on the new ARV to completely recover the initial investment. |
| Repeat | Redeploy extracted liquidity. | Utilize the recovered, tax-free capital to acquire the next asset, generating exponential portfolio growth. |