Buy · Rehab · Rent · Refinance · Repeat
Model the whole cycle: what you put in to buy and fix it, what the refinance hands back, how much of your own cash is still tied up, and what it rents for after.
What it costs to get the keys.
The work, and how long until the refinance.
Rough ranges: cosmetic $10–20/sq ft · moderate $20–40 · full gut $40–80+. For a line-by-line breakdown by category, use the Repair Cost Estimator and send its total here.
Taxes, insurance, and utilities during the rehab. If you finance the purchase & rehab below, its loan payments are calculated separately — no need to include them here.
Hard money or a private loan to buy and fix it. Leave off if you're paying cash.
Leave at 0 to borrow the most the lender allows. The loan is the smallest of: your amount, (price × purchase % + rehab × rehab %), (price + rehab) × loan-to-cost, and ARV × loan-to-ARV. A cap set to 0 means “no cap.”
Typical 2026 hard-money terms: 9–12% interest-only, 1.5–3 points, 85–90% of total cost, capped at 70–75% of ARV, rehab released in 3–5 draws. Interest-only keeps the full balance due at the refinance. Draw-based interest assumes rehab money is drawn evenly while the rehab is underway; switch it off if your lender charges interest on the whole loan from day one. Amortizing loans ignore draw timing and minimum-interest months.
The long-term loan once it's fixed and appraised.
The LTV actually used is the lower of your refinance LTV and the lender's max (minus the cut, if the holding period is shorter than the seasoning period). Lenders measure DSCR as gross rent ÷ (P&I + tax + insurance + HOA). Example DSCR-lender matrix (May 2026): single-family 75%, 2–4 units 70%, loans under $150k 65% and DSCR above 1.25, −5% if owned under 6 months. Get your own lender's numbers.
What it rents for once it's fixed.
Recurring costs, excluding the new mortgage.
Market value at 0 uses the ARV, since the rehab raises the assessment. 45 mills is only an example; use the non-homestead total from your township or city treasurer. Michigan: assessment ratio 50%, and taxable value resets to that level the year after a sale, so the seller's bill is not your bill. Exempt mills: up to 18 only if you will live there and file the Principal Residence Exemption; 0 for a rental. Other states: use your county's assessment ratio.
Living in one unit of a 2–4 unit? Turn this on.
Enter market rent for every unit, yours included. Their total replaces the monthly rent above, so the move-out numbers still use every unit.
Michigan's Principal Residence Exemption covers only the unit you live in (about 1 ÷ number of units). It applies when property tax is calculated from millage: the exempt mills are applied to this share while you live there, and dropped if you move out.
One thing goes wrong at a time. A deal that keeps positive cash flow and still passes the lender's DSCR in every row is robust; one that fails several rows only works if everything goes right.
| Scenario | Cash left in deal | Monthly cash flow | Cash-on-cash | Lender DSCR | Result |
|---|
The same deal under three ARV/rent assumptions — ARV is the single biggest source of BRRRR risk, since appraisals often come in under expectations.
| Conservative ARV −10%, Rent −5% |
Expected as entered |
Optimistic ARV +5%, Rent +5% |
|
|---|---|---|---|
| ARV used | $0 | $0 | $0 |
| Rent used | $0 | $0 | $0 |
| Cash left in deal | $0 | $0 | $0 |
| Monthly cash flow | $0 | $0 | $0 |
| Cash-on-cash ROI | 0.0% | 0.0% | 0.0% |
A refinance is the classic BRRRR route, but it's not the only way to get equity out once the property is stabilized. A few common ones:
General information, not lending advice — availability, rates, and requirements vary by lender and change over time. Talk to a mortgage broker or lender about what fits your specific deal.
We'll walk through the few fields that matter most for an accurate result. You can leave at any time.