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
Fill in the fifteen figures that apply, using 0 where it is zero. Keep monthly holding costs (without principal) separate from purchase loan principal you've already paid. Enter purchase costs paid in cash and refinance costs taken from the new loan once each. Enter the ARV and the lender's LTV; if there is a new loan, enter its rate and choose its term. Enter rent, vacancy and operating costs, noting any taxes, insurance or HOA already included. Tick the confirmation and compare the cash from the refinance, your cash returned, your cash still in the deal and the rental cash flow. Get the actual payoff figure 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?
The new loan is compared with the project cost (up to 100% of it), before paying off the old loan and refinance costs. Cash from the refinance = new loan − remaining purchase loan balance − refinance costs. Your cash returned is the positive part of that, up to what you put in. A negative result means you need to add money; it isn't hidden as zero. Your cash still in the deal can't go below zero; anything above what you put in is extra borrowing, not profit. If you put in no cash of your own, there's no share returned to show.
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 = rent after vacancy − your operating costs − the new loan's monthly principal and interest. The loan payment is principal and interest only; your operating costs may already include property taxes, insurance, HOA and maintenance, so don't leave them out or add them twice. Cash-on-cash = 12 × that monthly cash flow ÷ your cash still in the deal; it is not a guaranteed year's income, a return from appreciation or IRR. If none of your cash is left in the deal, there's no ratio, even when cash flow is negative. Getting all your cash back doesn't 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?
The holding period is 1–36 whole months; 2.0 means 2, not 20. Amounts can be up to $2 billion each; LTV, rate and vacancy allow four decimal places within their ranges. The new loan, rent after vacancy and the monthly payment are each rounded once to the cent, and the cash totals use those amounts and holding costs in cents × whole months. Percentages come from those totals, not from rounded figures on screen. Results above $100 billion can't be shown; this is a calculator limit, not a bank rule. Income or profit taxes, IRR, reserves and a full loan or rental history are not calculated; update real quotes and recalculate.