BRRRR: Refinance Cash and Rental Cash Flow
Separate gross loan coverage from own-cash recovery, refinance costs and post-refinance cash flow.
What This Calculator Does
Model purchase, cash-paid rehab and a later refinance using explicit acquisition costs, original purchase debt, principal already paid and refinance costs. Compare gross loan/project-cost coverage with net refinance cash and actual recovery of your own outlay. Then estimate monthly rental cash flow under the entered new-loan and operating assumptions.
Who Is This For
Investors, real-estate agents and clients evaluating a specific Florida BRRRR scenario with documented costs and lender quotes. This is a declared nominal cash ledger, not approval, a verified appraisal, a complete financing lifecycle or a plan for all personal liquidity.
How It Works
Enter the fifteen applicable assumptions, including explicit 0 where appropriate. Keep nonprincipal monthly carry separate from actual purchase principal already paid. Enter cash-paid acquisition costs and refinance costs withheld from the new loan once, without duplicates. Supply ARV and quoted LTV; if new principal is positive, enter the nominal rate and select the amortization term. Enter rent, vacancy and operating costs, confirming any taxes, insurance or HOA already included. Confirm the model; compare net cash, own recovery, retained cash and rental cash flow. Verify the dated payoff separately.
Frequently Asked Questions
Which costs and own-cash amounts does the model use?
Project cost is purchase plus cash-paid rehab, acquisition and nonprincipal monthly carry times whole holding months. Acquisition is nonrefundable cash paid, net usable credits, not refundable escrow or unspent reserves. Own cash is project cost minus the original purchase loan plus actual principal already paid. That principal payment is not an expense and must not be in carry again. Pre-refinance rental receipts are not offset against this outlay. It is a gross-outflow basis, not peak or total personal liquidity.
Why are gross coverage and own-cash recovery separate?
Gross coverage is the smaller of new principal and project cost; its percentage uses project cost and is capped at 100%, before old payoff and refinance costs. Net refinance cash subtracts remaining old principal and refinance costs from the gross new loan. Own recovery is positive net cash capped at your own outlay. Negative net cash means additional funds are needed, not zero proceeds hidden by clipping. Retained own cash cannot be negative; cash beyond your own outlay is extra borrowing, not profit. With no own outlay, its recovery percentage is undefined.
How are principal already paid and refinance fees counted?
The old modeled payoff is original purchase principal minus principal already paid in cash. Those payments increase your own outlay and lower old payoff; they are not added to project expenses or monthly carry. Refinance costs are net nonprincipal charges deducted once from new-loan proceeds, separate from cash-paid acquisition. Extra unpaid interest or penalties belong there only if not already counted. The model has no amortization history, additional draws or financed rehab. Obtain the actual dated lender payoff separately; an entered principal difference is not a settlement quote.
What does post-refinance cash flow include?
Monthly cash flow is vacancy-adjusted rent minus entered operating costs and the new loan's monthly principal and interest. The loan payment itself is P&I only; operating costs may already include property taxes, insurance, HOA and maintenance. Do not omit or add them twice. Cash-on-cash is a run-rate of 12 times that monthly flow divided by positive retained cash, not a guaranteed year's income, capital-gain return or IRR. With zero retained cash, the ratio is undefined even if cash flow is negative. Full own-cash recovery does not mean positive cash flow or a risk-free property.
Are lender LTV, ARV or a zero new loan an approval?
No. Enter your lender's terms or an explicit scenario: LTV 0%–100%, rate 0%–25% where the new loan is positive, and a quoted full-amortization term. None of those ranges is a universal program limit or eligibility result. ARV may be 0 as a loss-of-value stress assumption; rent may also be 0. If ARV times LTV gives zero new principal, rate and term are not applicable and no bank offer is invented. Old principal or refinance costs can still require additional cash. Appraisal, seasoning, underwriting and actual payoff need separate verification.
How are months, cents and model limits handled?
Holding is 1–36 whole months; 2.0 means 2, not 20. Each money input allows cents up to US$2 billion. LTV, rate and vacancy allow four decimals within their stated ranges. New principal, vacancy-adjusted rent and monthly P&I each round once to cents, half-cent upward; the cash ledger uses those amounts and carry in cents times whole months. Ratios use supplied totals, not rounded displays. Monetary outputs over US$100 billion in absolute value are rejected for computation, not a bank rule. Income/profit taxes, IRR, reserves and a complete loan/rental history are not calculated; update actual quotes and recalculate.