Tools
Model the whole BRRRR cycle: all-in cost through rehab, refinance proceeds at the new appraised value, cash left in the deal, and whether the stabilized property carries a DSCR the refinance can actually clear.
BRRRR & ARV Model
Bridge interest, points, title, insurance, utilities during rehab
Share of price + rehab the bridge lender funds
All-in cost—
Cash in during rehab—
Refi loan amount—
Cash recycled—
Cash left in deal—
Equity created—
Refi DSCR—
All-in to ARV—
Enter your numbers above.
The number that decides a BRRRR
All-in cost as a percentage of ARV. Everything else follows from it.
| All-in ÷ ARV | What happens at a 75% refinance |
|---|---|
| Under 70% | Full recycle with cash left over. Rare, and usually means the rehab scope was underestimated. |
| 70–75% | Near-full recycle. This is the target band. |
| 75–80% | Meaningful cash stays trapped. Still a good deal if the stabilized cash flow is strong. |
| Over 80% | You bought retail and renovated. The BRRRR is now a buy-and-hold with extra steps. |
Where BRRRR models go wrong
- The ARV was your number, not an appraiser's. Underwriting uses the appraisal. If your comparables were the three nicest sales in the neighbourhood, expect the report to come in 5–10% under.
- Seasoning was not planned for. Most lenders want six months from deed recording before refinancing at the new ARV. That is six months of bridge interest in your carry line — and it belongs in the model, not in a surprise.
- The rehab budget had no contingency. Add 15% to whatever your contractor quoted. On a pre-1960 building with knob-and-tube, cast iron, or an unpermitted addition, add 25%.
- Post-renovation taxes were ignored. A gut renovation frequently triggers reassessment. The tax line in your refinance PITIA is not the seller's old tax bill.
- The refinance was assumed, not pre-underwritten. Rates move, guidelines tighten, and a bridge loan matures whether or not the takeout is ready.
Underwrite the exit before you buy the entry.
We will size the DSCR takeout at the same time as the rehab loan, so the bridge is structured around a refinance we already know clears. That sequencing is the single largest difference between a BRRRR that recycles and one that strands your capital.
One lender, both halves of the cycle
Rehab financing to acquire and renovate, then a permanent DSCR refinance to stabilize — underwritten together from the start.
Get a term sheet Rehab programEstimating tool for education only. Not a quote, pre-approval, or loan commitment. Actual refinance proceeds depend on the appraised value at the time of refinance, the applicable LTV cap, seasoning requirements, and underwriting at that time.