How much cash comes back out of the deal?
Buy, rehab, rent, refinance. Model the cash-out refi and see what stays stuck in the walls.
The property
The refinance
Rent & costs
Cash out at refi
$204,000
Capital left in the deal
$1,000
Nearly there: a small slice stays in the deal.
New loan
$210,000
Results
Payment after refi
$1,799
Cash flow after refi
+$401
Equity remaining
$70,000
The refi is the whole game
A BRRR deal lives or dies at the refinance. Most cash-out programs lend up to 75% of the after-repair value. If that covers what you put in, your capital is free for the next deal. If it doesn't, the difference stays parked in the property.
Milwaukee's brick duplexes and bungalows are tailor-made for this play: real spread between as-is and after-repair value, rents that carry the new payment. In Florida the spread is thinner and insurance eats into post-refi cash flow, so the deals that work are usually heavier rehabs. Either way, budget about six months of holding costs: most lenders want seasoning before the cash-out.
Ready to run it for real?
I watch Milwaukee and Central Florida daily and flag the listings where the rehab math actually works. Tell me what you're hunting.
What does BRRR stand for?
Buy, rehab, rent, refinance. Buy under market, renovate, place a tenant, then refinance on the new appraised value to pull capital back out, and repeat.
What LTV should I model?
75% of after-repair value is standard for investor cash-out programs. Stress-test at 70%. If the deal only works at 80%, it's fragile.
How long until I can refinance?
Most lenders want six months of ownership seasoning before a cash-out on the new value. Plan holding costs for at least that long.
What if I can't pull everything out?
Most deals leave something in. The question is whether the cash flow and equity you keep justify it. Recovering 80% with positive cash flow is still a good deal, just not an infinite one.
More calculators
Every number here is an estimate for planning: not a quote, a rate lock, or lending advice. I'm a broker, not a lender. When you're ready, I'll connect you with trusted lenders who can price your exact scenario.