BRRRR Strategy Return

Real Estate Investing

Updated Apr 2026 • Has calculator

Measures what percentage of original cash invested is recovered through a cash-out refinance after the Buy, Rehab, Rent, Refinance, Repeat cycle.

What is BRRRR Return?

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is a real estate investment strategy that aims to recycle capital: an investor buys a distressed property at a discount, renovates it to increase value, stabilizes it as a rental, then does a cash-out refinance based on the higher appraised value (ARV). The goal is to pull out most or all of the original cash investment so it can be redeployed into the next deal. A 100% cash recoupment means the investor owns a rented property with essentially no capital remaining — a position sometimes called 'infinite return.' The BRRRR Return calculator shows what percentage of original cash you recover in the refinance step.

Formula

Cash Recouped (%) = (ARV × Refinance LTV%) / Total Cash Invested × 100

Worked Example

2024

Step 1 Purchase: $120,000 | Rehab: $55,000 | Closing/holding: $10,000

Step 2 Total cash invested: $185,000 | After-repair value (ARV): $280,000

Step 3 Cash-out refi at 75% LTV: $280,000 × 0.75 = $210,000 new loan

Step 4 Cash recouped = $210,000 / $185,000 × 100 = 113.51%

Step 5 → Pulled out all capital + $25,000 extra; property rents for $1,750/mo

Source: Investopedia — BRRRR Method (2024-01-01)

Calculate BRRRR Return

Total Cash Invested ($)

Purchase price + rehab costs + holding costs + closing costs

After-Repair Value — ARV ($)

Appraised value after renovation is complete

Refinance LTV (%)

Lender's maximum loan-to-value on the cash-out refinance (typically 70–80%)

Cash Recouped

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Not investment advice.

How to Interpret BRRRR Return

< 70

Low Recoupment — significant capital remains in the deal

70 – 90

Partial Recoupment — some capital freed for the next deal

90 – 100

Near-Complete Recoupment — most capital recovered

> 100

Full Recoupment — all capital back or more; 'infinite return'

📚 Advanced Real Estate — Complete the path

Sources

Investopedia — BRRRR Method