One house, four ways to win.
Some deals don't make sense as a flip, but that doesn't have to mean a dead deal: a landlord who buys, renovates, rents and refinances may still say yes. The BRRRR tab in the Strategy calculator shows whether a landlord can buy, refinance and pull cash out, and what the property cash flows afterward, so you can show them how they get their cash back out. It's a strong fit for B, C and D areas where flips are harder.
Why it matters
- A second buyer pool. When flippers pass, a BRRRR investor may still say yes, and the deal stays alive.
- Show landlords their cash coming back. Refi proceeds and cash left in show how much of the investor's money they get back out.
- Lead with cash flow. Net monthly cash flow is what landlords want to see first.
Steps
- In the Deal calculator, scroll to the Strategy calculator and open the BRRRR tab.
- Enter Rent/mo and All-in acquisition.
- Enter the refinance terms: Refi LTV %, Refi rate %, Amortisation months and ARV.
- Fill in operating costs: Vacancy, Maintenance, Management, CapEx, Taxes/yr, Insurance/yr and HOA/mo.
- Review the results: Net cash flow/mo, Refi proceeds, Refi payment/mo, Cash left in and Monthly opex.
Good to know
- Use the rent from Pull the real numbers so cash flow starts from real data.
- Check Neighbourhood class first. In a D tract, BRRRR or a rental is often the better pitch.
- The Strategy calculator is a scratchpad. Nothing is saved, so save the property if you might make an offer.
- This isn't a buy or pass recommendation. It shows how the numbers work for a landlord.