The BRRRR Method Explained (2026)

BRRRR - Buy, Rehab, Rent, Refinance, Repeat - is how many investors recycle the same capital into property after property. It only works if the numbers work, so here is what each step means and how to calculate it in 2026.

The five steps

• Buy. Purchase a property below market value, usually one that needs work. Your profit is set here, on the buy.
• Rehab. Renovate to force appreciation and make it rentable. Budget the rehab precisely - overruns are where BRRRR deals go wrong.
• Rent. Place a tenant so the property produces income and qualifies for refinancing.
• Refinance. Do a cash-out refinance based on the new, higher value (the after-repair value, or ARV). The goal is to pull most or all of your original cash back out.
• Repeat. Use that recovered capital as the down payment on the next deal.

The number that decides it: ARV

The whole strategy hinges on the after-repair value and the refinance loan-to-value. If your all-in cost (purchase plus rehab plus closing) is well below the ARV, the cash-out refinance returns your capital. If it is not, money stays trapped in the deal and the 'repeat' stalls.

What to calculate before you buy

• All-in cost: purchase + rehab + holding + closing.
• ARV and the expected refinance amount (lender LTV x ARV).
• Cash left in the deal after refinance - ideally near zero.
• Post-refinance cash flow at the new loan amount.

Model the deal

The Plannful Fix & Flip + BRRRR Calculator models all-in cost, ARV, the refinance, cash left in the deal and post-refinance cash flow in Excel or Google Sheets - so you know if a BRRRR works before you commit.

See the Fix & Flip + BRRRR Calculator →

Holding it as a long-term rental afterwards? Check the deal with the Rental Property Analyzer.

Frequently asked questions