Your BRRRR "cash left in deal" number is probably wrong
Most people calculate it as purchase + rehab − refi loan. That understates what's actually trapped.
Three things go missing:
Holding costs during rehab. Four months of hard money at 11% interest-only on $180K is about $6,600, plus taxes and insurance. That never comes back at refi.
Two sets of closing costs. You pay to buy and to refinance — roughly 2–3% each time. On a $150K buy refinancing at $220K, that's around $8,000 most spreadsheets count once.
Seasoning. If you modeled a 4-month exit and your lender requires 6, that's two extra months of carry you didn't budget.
Run it on your last deal. If capital recovery drops below 80%, the deal recycles worse than you thought — and that decides whether you can do the next one.
What's your actual recovery rate been?