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Strategy

BRRRR Calculator

Calculate your Buy, Refurbish, Rent, Refinance, Repeat strategy. See exactly how much capital you can recycle and whether you can achieve infinite returns.

B

Buy

Below market value

R

Refurbish

Add value

R

Rent

Generate income

R

Refinance

Pull out capital

R

Repeat

Scale your portfolio

Phase 1: Buy & Refurbish

Stamp Duty: £7,500

18.2% below ARV
Equity: £40,000

Typically 25% of purchase price

Bridging Finance

Short-term loan for purchase
12%
6 months

Phase 4: Refinance

75%

Refinance amount: £165,000

5.5%
25 years

Phase 3: Rent

10%
5%
2 weeks

🎉 Infinite Returns Achieved!

You can pull ALL your money out and still own the asset

Money Left In

£0

Infinite returns!

Cash-on-Cash

Annual return on capital

Monthly Cash Flow

-£82

After refinance

Total Cash Required:£88,550
Refinance:£165,000
Equity Created:£40,000

Capital Flow

Cash Out (Purchase)

-£88,550

Cash In (Refinance)

+£165,000

Net Position

+£0 PROFIT

Monthly Numbers (After Refinance)

Rental Income+£1,154
Mortgage Payment-£803
Management & Costs-£433
Monthly Cash Flow-£82
Annual Cash Flow-£990
Total Equity£55,000

BRRRR Tips

CAUTION
Your purchase is only 18.2% below ARV. Aim for 25%+ to ensure refinance covers costs.
TIP
Always get 3 builder quotes and add 15-20% contingency to refurb budgets.
INFO
Most lenders require 6-month seasoning before refinancing to the new value.

Money Left In Deal

Money Left In = Total Cash Required - Refinance Amount

If Money Left In ≤ 0, you've achieved 'infinite returns' as you've pulled out all your capital while still owning an income-producing asset.

Frequently Asked Questions

What does BRRRR stand for?

What is 'Infinite Returns'?

What discount should I look for?

What's a bridging loan?

When should I refinance?

What are the risks of BRRRR?