What is an 'Infinite Return' in a BRRRR deal?

An 'Infinite Return' occurs when the net cash-out refinance proceeds are equal to or greater than the total cash invested (purchase price, rehab costs, closing fees, and holding costs). Because the investor has $0 of their own money left in the property while retaining cash flow and equity, the mathematical cash-on-cash return is infinite.

What is a refinance seasoning period?

A seasoning period is the amount of time a conventional or DSCR lender requires you to own the property before executing a cash-out refinance based on the new appraised After-Repair Value (ARV). Most Fannie Mae/Freddie Mac lenders require 6 to 12 months of seasoning, though some DSCR and portfolio lenders permit shorter windows with verified renovation receipts.

What is the standard refinance Loan-to-Value (LTV)?

Most investment property lenders offer cash-out refinancing between 70% and 75% of the property's After-Repair Value (ARV). Some lenders offer up to 80% LTV for single-family residences, but 75% LTV is the institutional standard for conservative cash flow.

BRRRR Calculator | Free Real Estate Buy Rehab Rent Refinance Repeat Tool

📝 Deal Assumptions & Parameters

Unlimited Runs

1️⃣ Step 1: Buy & Acquisition

Purchase Price

Purchase Closing Costs

2️⃣ Step 2: Rehab & Holding

Estimated Rehab Budget

Holding Costs (Taxes, Power, Interest)

3️⃣ Step 3: Rent & Operating Expenses

Monthly Gross Rent

Monthly Expenses (Taxes, Ins, Mgmt, Vacancy)

4️⃣ Step 4: Refinance (Cash-Out)

After-Repair Value (ARV)

Refinance LTV %

Mortgage Interest Rate

Cash In Deal Score 🎉 100% Cash Recovered

Total Capital Left In Deal:

$0 (+$1,500 Back)

All initial capital returned. Your money is ready to repeat the cycle!

Total All-In Investment: $166,500

New 75% Refinance Loan: $165,000

New Monthly Mortgage (P&I): $1,098/mo

Net Monthly Cash Flow: +$252/mo

Cash-on-Cash Return (CoC): Infinite %

Immediate Equity Built: $55,000

🔁 Step 5: Repeat Feasibility

Capital Recycled for Next Deal: $165,000

By executing a successful 75% cash-out refinance on your After-Repair Value, you maintain ownership of this cash-flowing rental property while deploying your original capital into Property #2.

Strategy Playbook

The 5-Step BRRRR Method Blueprint

How sophisticated investors build multi-million dollar rental portfolios with recycled capital.

1. BUY

Acquire deeply discounted properties requiring cosmetic or structural rehab. Target 65%–70% of ARV minus repairs.

2. REHAB

Execute strategic renovations that directly raise appraisal value (kitchens, baths, durable LVP flooring).

3. RENT

Screen high-quality tenants at top market rent. Reliable occupancy establishes operating income for refinance underwriting.

4. REFINANCE

Appraise at new ARV. Obtain a 70%–75% LTV commercial or DSCR cash-out refinance to repay initial acquisition and rehab costs.

5. REPEAT

Take the pulled-out capital and roll it into the next distressed acquisition without saving another initial down payment.

Underwriting Standards

The 70% & 75% Rule in BRRRR

Understanding the mathematical criteria for extracting 100% of your capital.

To achieve the coveted **"perfect BRRRR"** (leaving \$0 in the property), your total acquisition price plus total rehab costs must not exceed 75% of your final After-Repair Value (ARV):

Max Purchase Price = (ARV × 75%) - Estimated Rehab Costs - Closing Costs

If your all-in costs are below this line, the cash-out refinance will return every single penny you invested, leaving you with a cash-flowing asset owned for free.

Frequently Asked Questions

BRRRR Method Frequently Asked Questions

What is the BRRRR method in real estate?

The BRRRR method stands for Buy, Rehab, Rent, Refinance, Repeat. It is a strategy where an investor buys a distressed property below market value, renovates it, rents it out, executes a cash-out refinance to pull back their initial capital, and repeats the process on the next property.

What is an "Infinite Return"?

An infinite return occurs when the cash-out refinance returns 100% (or more) of your initial invested capital. Because you have zero of your own dollars left tied up in the deal, your cash-on-cash return is mathematically infinite.

What is a seasoning period?

A seasoning period is the minimum time a lender requires you to own a property before allowing a cash-out refinance based on the new appraised value rather than purchase price. Most conventional lenders require 6 to 12 months, whereas many DSCR lenders allow shorter periods with documented rehab invoices.

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