Analyze a BRRRR
Enter rehab, ARV, refinance terms and rental numbers in Deal Analyzer to see how much cash you get back and leave in a BRRRR deal.
Use the BRRRR strategy (buy, rehab, rent, refinance, repeat) when you plan to renovate a property, rent it, and refinance to pull your cash back out. This page covers the sections specific to BRRRR. The steps every strategy shares are in Run the numbers.
What you need
Section titled “What you need”| Fields | |
|---|---|
| Required | Property Address, City, State, ZIP Code, Purchase Price, ARV (After Repair Value), Expected Monthly Rent |
Required fields have a red asterisk, and Analyze My Deal stays disabled until they are filled in. If some fields are missing, you see Score withheld instead of a Deal Score, with a banner listing what to add. If you check Cash Purchase, the loan fields are not needed.
Enter your BRRRR
Section titled “Enter your BRRRR”In Deal Analyzer, under Select Your Investment Strategy, select BRRRR, then pick the property address under Property Information.
These sections work the same way as in a flip: Purchase Price, Down Payment %, Closing Costs, Interest Rate % and Loan Term (Years); a Total Rehab Amount or Use Line Items, with an optional Include 10% Contingency and Construction Financing; and your ARV (After Repair Value), with Check Comps to help you set it. The details are in Analyze a fix and flip and Check comps and set ARV.
Under Holding Costs, enter the Holding Period (Months), the time between purchase and refinance, and your Monthly Carrying Costs during that period.
Under Refinance Information, choose a Refinance Method: Based on LTV % or Fixed Loan Amount. Enter the Refinance LTV % (a percentage of the ARV) or the Refinance Loan Amount. Then enter the Interest Rate % for the long-term loan and your Refinance Closing Costs. A Refinance Summary shows the ARV and the resulting refinance loan as you type. Chat with Lenny opens the financing coach.
Enter the Expected Monthly Rent. Then add Annual Property Tax, Annual Insurance and Property Management % (a percentage of rent). Optionally add Owner-Paid Utilities (Monthly) (Gas & Electric, Water, Sewer, Garbage, Lawn & Snow), the reserves Vacancy Rate % and Maintenance Reserve %, and Monthly HOA.
The button is in the results column on the right.
For a duplex, triplex, fourplex, multifamily or SFR + ADU property, a Unit Configuration section appears where you enter each unit’s bedrooms, bathrooms, Rent/Mo and Market Rent. The monthly rent is then filled in from the unit rents, and a Total Monthly Rent line adds them up.
Read the results
Section titled “Read the results”The Investment Summary shows:
- Monthly Cash Flow and Annual Cash Flow: rent minus expenses and the mortgage. Negative numbers are red.
- Cash-on-Cash ROI: the yearly return on the cash you put in.
- Initial Cash Out of Pocket: what you spend before the refinance.
- Expected Cash Back When You Refinance: how much of that cash the refinance returns.
- Money You’re Leaving in the Deal: the cash still tied up after the refinance. This is the number to watch for a true BRRRR.
- Cap Rate (on ARV).
Below that, four sections you can open and close: Purchase Breakdown, Rehab Breakdown, Refinance Details (initial loan, refinance LTV and rate, new loan amount, net capital recovered, monthly mortgage after the refinance and remaining capital in the deal) and Rental Income & Expenses (Monthly).
The badge next to the score reads Excellent Deal, Good Deal, Fair Deal or Poor Deal. See Deal Score for how to use it.
Save the deal to your pipeline
Section titled “Save the deal to your pipeline”Select Save to Pipeline, at the top of the page or under the Deal Score. Fill in every required field first.