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BRRRR Strategy Calculator

BRRRR investors buy distressed, rehab, rent stabilize, refi out cash, and repeat.

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$
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%
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Cash left in

$10,500

Refi amount

$187,500

Total invested before refi

$193,000

How the math works

Refi = ARV × LTV. Cash out = refi − closing. Cash left in = invested − cash out.

$250k × 75% = $187.5k − $5k = $182.5k cash. Invested $193k. Cash left in: $10.5k.

How to Use

  1. Enter arv.
  2. Enter purchase price.
  3. Enter rehab cost.
  4. Enter carrying cost.
  5. Enter refi ltv %.
  6. Enter refi closing.
  7. Read cash left in.

Frequently Asked Questions

BRRRR mechanics?

Buy distressed at 60–70% ARV. Rehab 10–15% ARV. Total acquired cost: 70–85% ARV. Rent stabilization 60–90 days. Refinance: 75% LTV typical, cash-out at 75% × ARV − all-in cost. Capital pulled: often 80–100% of original cash invested if math works. Repeat with same capital. Risks: rehab overrun, refi appraisal short of expected, rate environment unfavorable at refi. DSCR matters: NOI / debt service > 1.20 typical. Best in growing markets where ARV continues to rise.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.

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