A flip pays you once. A BRRRR deal pays you every month and hands your capital back.
Fill in the blue fields. Gold bordered fields are the key assumptions from Day 2: buy at 65 to 75% of ARV minus rehab, refinance at 75% LTV, keep DSCR above 1.20, and recover 80 to 100% of your cash. Everything else calculates as you type and stays on this device.
Pull your ARV from at least three sold comps within half a mile and six months. Use the real tax bill and a real insurance quote. Never underwrite at 100% occupancy.
GO. Strong BRRRR deal
Capital recovery
83.7%
DSCR
1.92
Net cash flow / mo
$850
Cash left in deal
$4,956
Cash returned at refi
$25,500
Criteria passed
8 / 8
1. Property details
Property address
Property type
Square feet
Beds / baths
Year built
Currently occupied?
Annual property taxes
Use the actual bill, never an estimate
$
Annual insurance
Landlord policy quote
$
2. Rehab estimate
$/sq ft + exterior + water + asbestos, then markupBase cost per sq ft
Rental grade: $30 to $45 typical
$
Exterior
$5k to $10k typical
$
Water damage
$5k if present
$
Asbestos
$5k if present
$
Subtotal
$43,000
Markup / contingency
%
Proposed rehab cost
$49,450
3. Purchase and ARV
Purchase price
$
Comp 1 (sold)
$
Comp 2 (sold)
$
Comp 3 (sold)
$
Average of comps
$180,000
ARV you will use
Leave blank to use the comp average
$
Buy rule
Day 2: 65 to 75% of ARV minus rehab
%
Max allowable offer
$85,550
Purchase price vs MAO
YES, move on
Purchase price as % of ARV
38.9%
All-in cost (purchase + rehab)
$119,450
All-in as % of ARV
66.4%
4. Acquisition financing
buy + rehabFinancing type
Loan % of purchase price
0% if all cash
%
Loan covers rehab?
Acquisition loan amount
$105,450
Interest rate (annual)
%
Points / lender fees
%
Lender fees
$3,164
Down payment
$14,000
Rehab paid from your cash
$0
Appraisal
$
Inspection
$
Buy-side closing costs
$
Total purchase costs (cash out of pocket)
$21,849
5. Holding costs
until rented and refinancedMonthly interest-only payment
$1,055
Electric
$
Gas
$
Water
$
Lawn / alarm / other
$
Monthly holding cost
$1,435
Months to refinance
Rehab + lease-up + seasoning (6 to 12)
Total holding costs
$8,607
Total capital invested
$30,456
Purchase costs plus holding costs. This is what the refinance has to give back to you.
6. Rent and operating expenses
Monthly market rent
Rentometer, Zillow, 2 to 3 local PMs; price at the 50th percentile
$
Gross annual rent
$32,400
Vacancy allowance
%
Effective gross income
$29,808
Property taxes (annual)
$1,500
Insurance (annual)
$1,100
Property management
8 to 10%, even if you self manage
%
Maintenance reserve
%
CapEx reserve
%
Owner-paid utilities / HOA (annual)
$
Total operating expenses
$8,562
Expense ratio
26.4%
Net operating income (NOI)
$21,246
1% rule (rent ÷ purchase price)
3.86%
Rent as % of ARV
1.50%
7. Refinance
cash-out at ARVRefinance LTV
75% is standard for DSCR lenders
%
New loan amount (ARV × LTV)
$135,000
Refi interest rate (annual)
%
Refi term (years)
Refi closing costs
%
Refi closing costs ($)
$4,050
Acquisition loan paid off
$105,450
Cash returned at refi
$25,500
Total capital invested
$30,456
Cash left in deal
$4,956
Capital recovery rate
83.7%
Equity position after refi
$45,000
8. Cash flow after refinance
Monthly principal and interest
$920.94
Monthly taxes and insurance
$216.67
Monthly PITI
$1137.60
Annual debt service (P&I)
$11,051
DSCR (NOI ÷ annual P&I)
Lenders require 1.20, target 1.25+
1.92
Annual cash flow
$10,195
Net monthly cash flow
$850
Cash-on-cash (on cash left in deal)
205.7%
Cap rate (NOI ÷ all-in cost)
17.8%
9. $100K roadmap
Target monthly passive income
$
Doors needed at this deal's cash flow
10 doors
Go / No-Go scorecard
Day 2 BRRRR deal criteriaPurchase price at or below MAO (65 to 75% of ARV minus rehab)PASS
ARV confirmed with 3 sold compsPASS
Rent at or above 1% of purchase price (0.7% ok in appreciating markets)PASS
DSCR 1.20 or higherPASS
Capital recovery at refinance 80% or higherPASS
Net monthly cash flow $800 or higherPASS
All-in cost at or below 75% of ARVPASS
Refinance lender identified and pre-qualified before you buy
Deal compare
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