Calculator Documentation
BRRRR Strategy Calculator
Analyze Buy, Rehab, Rent, Refinance, Repeat deals with capital recovery and cash flow projections
Schema version 2.0.0 · Category: investment
Inputs
Acquisition
| Field | Type | Default | Notes |
|---|---|---|---|
| Purchase Price | currency | $200,000 | |
| Rehab Cost | currency | $40,000 | |
| Rehab + Seasoning (Months) | number | 6 | Months you carry the property before the refinance (rehab + lender seasoning) |
| Monthly Carrying Cost | currency | $500 | Taxes, insurance, utilities, and any acquisition-loan interest during the hold |
| Closing Costs | percentage | 3.00% |
After Repair Value
| Field | Type | Default | Notes |
|---|---|---|---|
| ARV | currency | $300,000 | Estimated market value after all repairs are complete |
Rental Income
| Field | Type | Default | Notes |
|---|---|---|---|
| Monthly Rent | currency | $2,000 | |
| Vacancy Rate | percentage | 5.00% |
Operating Expenses
| Field | Type | Default | Notes |
|---|---|---|---|
| Property Taxes | currency | $250 | Monthly property tax amount |
| Insurance | currency | $120 | Monthly insurance premium |
| HOA Dues | currency | $0 | |
| Property Management | percentage | 10.00% | Percentage of rent for property management |
| Maintenance | percentage | 5.00% |
Refinance Terms
| Field | Type | Default | Notes |
|---|---|---|---|
| Refinance LTV | percentage | 75.00% | |
| Refinance Rate | percentage | 7.00% | |
| Refinance Term | select | 30 | |
| Refinance Closing Costs | percentage | 2.00% |
Adjustable Parameters
| Parameter | Default | Range | Purpose |
|---|---|---|---|
| Good Cash Flow Threshold | 200 | 100 - 500 |
Calculations
Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.
totalAcquisitionCostTotal cash invested: purchase, rehab, closing costs, and carrying costs through rehab + seasoning
purchasePrice + rehabCost + (purchasePrice * closingCostsPct) + holdingMonths * monthlyCarryCost
refinanceLoanAmountRefinance loan amount based on ARV and LTV
arv * refinanceLTV
refinanceClosingCostsClosing costs on the refinance loan
refinanceLoanAmount * refinanceClosingPct
cashRecoveredCash recovered at refinance after closing costs
refinanceLoanAmount - refinanceClosingCosts
cashLeftInDealCash remaining in the deal after refinance
totalAcquisitionCost - cashRecovered
capitalRecoveryPctPercentage of capital recovered at refinance
if(totalAcquisitionCost > 0, (cashRecovered / totalAcquisitionCost) * 100, 0)
refinanceTermMonthsRefinance term in months
refinanceTerm * 12
monthlyRateMonthly interest rate
refinanceRate / 12
monthlyPIMonthly principal and interest payment
if(monthlyRate == 0, refinanceLoanAmount / refinanceTermMonths, (refinanceLoanAmount * monthlyRate * pow(1 + monthlyRate, refinanceTermMonths)) / (pow(1 + monthlyRate, refinanceTermMonths) - 1))
effectiveRentEffective monthly rent after vacancy
monthlyRent * (1 - vacancyRate)
propertyMgmtMonthly property management cost
effectiveRent * propertyMgmtPct
maintenanceMonthly maintenance reserve
monthlyRent * maintenancePct
capexReserveCapital expenditure reserve (5% of rent; roofs and furnaces are real)
monthlyRent * 0.05
totalMonthlyExpensesTotal monthly operating expenses including CapEx reserve
propertyTaxes + insurance + hoaDues + propertyMgmt + maintenance + capexReserve
pitiaMonthly PITIA (P&I + Taxes + Insurance + HOA)
monthlyPI + propertyTaxes + insurance + hoaDues
monthlyCashFlowMonthly cash flow after all expenses
effectiveRent - pitia - propertyMgmt - maintenance
annualCashFlowAnnual cash flow
monthlyCashFlow * 12
noiAnnual Net Operating Income
(effectiveRent - totalMonthlyExpenses) * 12
capRateCapitalization rate based on ARV
if(arv > 0, (noi / arv) * 100, 0)
cashOnCashCash-on-cash return percentage
if(cashLeftInDeal > 0, (annualCashFlow / cashLeftInDeal) * 100, if(annualCashFlow > 0, 999, 0))
dscrDebt Service Coverage Ratio
if(pitia > 0, effectiveRent / pitia, 0)
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