The BRRRR Method: The 5 Numbers That Decide a Deal
Updated 2026 · PropVision
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a strategy for recycling the same down payment into deal after deal. It only works if the numbers line up. Here are the five that decide whether a BRRRR is a winner or a trap.
1. Purchase price
Buy below market. The whole model depends on creating equity, so you need a discount going in — distressed, dated, or motivated-seller deals. Pay retail and BRRRR falls apart.
2. Rehab cost
Be brutally realistic. Get real contractor numbers and add a 10–15% buffer. Underestimating rehab is the most common reason BRRRR deals leave too much cash stuck in the property.
3. ARV (After-Repair Value)
What it's worth renovated. Pull comps of similar, recently-sold renovated homes. Your refinance is based on ARV, so getting this right is everything.
4. The refinance
Usually 75% of ARV. Most lenders refinance up to ~75% of the after-repair value. If ARV is $300k, you can pull out ~$225k. The goal: that payout covers your purchase + rehab so you recover most (or all) of your cash.
5. Cash left in the deal
The scorecard. Cash left in = (purchase + rehab + closing) − refinance proceeds. The dream is near-zero (an "infinite return"). Under ~$15k and still cash-flowing is a strong BRRRR.
Quick gut-check formula: (75% × ARV) ≥ (Purchase + Rehab). If that holds, you'll likely recover your capital on the refinance.
Run a BRRRR in seconds
Instead of building a rehab spreadsheet for every lead, paste the address into PropVision — it pulls value, rent, and the deal math (including ARV-style numbers and a verdict) instantly, so you can spot the rare deals that actually pencil.
Analyze a deal free →