How are you running the numbers on BRRR deals?

Question

I’ve been looking more closely at BRRR strategies lately, and I’m realizing the analysis feels a lot more complex than a straight rental deal. It’s not just cash flow — I’m also trying to account for rehab costs, refinance terms, and how much equity I can actually pull back out.

Curious how others here approach it: do you build out your own spreadsheet, stick to a simple formula, or have another way of keeping the moving pieces straight?

I’ve been experimenting with some ways to speed this up, but I’d love to hear what’s been working best for you all when it comes to BRRR analysis.

Jaron Walling · Answer

@Samuel Gunawan I recommend building out a spread sheet. This is how is you learn what strings to pull on a BRRRR or flip deal. The BP calculators are pretty good as well but it just spits out numbers. You don't learn as much.

If you're new to REI and BRRRR someone should say this; expect the unexpected, and plan to leave $$$ in the deal. My wife and I have left $10-15k in all our properties. It's called in investing for a reason. It's not glamorous and we didn't get a check back at closing. Those days are over and if you think that's going to happen in 2025 it's extremely rare.

Once you learn the numbers and do market research be honest with your goals. Use real market numbers (don't fudge the numbers). You'll be better off when you make offers, and get knee deep in a remodel.

Cheers.

Elealeh Fulmaran · Answer

You’re right—BRRR has more moving parts. Keep it tight with a five-check “BRRR math”:

• Buy: Max offer = ARV minus rehab, minus profit/equity buffer, minus all costs. Use comps you’d bet on.
• Rehab: Scope needs vs wants; add a contingency; tie each line to either rent lift or ARV lift.
• Rent: Pro forma with today’s realistic rent, not best case; include true expenses and reserves.
• Refi: Model two terms scenarios; check seasoning and expected LTV so you know how much cash you can pull; stress-test rate and appraisal.
• Repeat: Ensure you still like cash flow after the new loan and you’re not overlevered.

Use a simple spreadsheet: inputs for ARV, purchase, rehab, holding/closing, rent/expenses, and refi terms; it spits out cash left in, cash flow, and ROI.

Arman Ahmed · Answer

@Samuel Gunawan

BRRRR numbers can look messy at first, but I keep it simple: total all-in costs (purchase + rehab + closing/holding), confirm ARV with comps, then check if the bank’s 70–75% refi covers most of those costs. Last step is cash flow — run realistic rents minus PM, vacancy, and maintenance. Biggest mistakes come from underestimating rehab or overestimating ARV, so stay conservative. Do you already have a process for those two?

Michael Smythe · Answer

@Samuel Gunawan have you checked out the BiggerPockets BRRR Calculator under "Analyze Deals"?

Jeff Roth · Answer

Hi Samuel-

Great question! You are asking how to analyze a Buy Rehab Rent Refinance and Repeat (BRRRR) deal. First off, this is a great we to build your portfolio. Secondly, not all markets will allow you to do this. Third, you need to have a solid local team that acts as your fiduciary.

As far as calculating a BRRRR, I recommend you work with an investor friendly Realtor in the area you are interested. They should be able to help you identify markets and properties to use the BRRRR buying method. Recommend you look at duplexes as you should always have some rent coming in. Once a property is identified, the property manager and contractor should be involved in the due diligence to give you accurate estimates for work and weigh in on how to add the most value. Then, you can do the work immediately, if vacant, or as the units become available. The positive cashflow can help prepare for these improvements. After improvements are made, work with your investor friendly lender to refinance, pull money out, and go shopping again.

There are several markets in Michigan to BRRRR.

To Your Success!

Samuel Gunawan · Answer

Thanks Elealeh, I've been playing around with making the formulas for BRRR on an actual website, I'm curious if you'd say it's accurate? Feel free to check it out here: renturn.io

How are you running the numbers on BRRR deals?

Most Popular Reply