Run any potential BRRRR deal through this screener before spending time on a full analysis. Enter the after-repair value, rehab estimate, and your acquisition terms — the calculator tells you your maximum offer, whether the refinance math works, and how much capital you recover.

For a full cash flow, cap rate, and 5-year projection analysis, use the Investment Property Analyzer.

Property Valuation
Verified market value after renovation — base this on comparable closed sales.
70% is standard. Adjust for market conditions or risk tolerance.
Acquisition and Rehab
15–20% recommended for Gulf Coast properties.
Hard money interest, utilities, insurance, and taxes during rehab period.
Refinance
Standard investment property cash-out refinance: 75%.
Typically 2–3% of refinance loan amount.

Acquisition Analysis
Maximum Allowable Offer (MAO)
Purchase vs. MAO
Total Investment
Purchase Price
Rehab (with contingency)
Carrying Costs
Refinance Closing Costs
Total All-In Cost
All-In as % of ARV
Refinance Analysis
Refinance Loan Amount (ARV × LTV)
Monthly P&I After Refinance
Capital Recovered at Refinance
Capital Remaining in Deal
Deal Verdict
BRRRR Outcome
DSCR (Rent ÷ Monthly P&I)

How to Read the Results

MAO (Maximum Allowable Offer): The most you should pay, given your ARV and rehab estimate, to keep all-in costs below the refinance threshold. This is a starting point — the actual offer depends on negotiation and verified comparables.

All-In as % of ARV: This is the critical number. Keep it below your refinance LTV (typically 75%) and you will recover all your capital at refinance. The gap between your all-in percentage and 75% is your margin of safety.

Capital Recovered: The refinance loan proceeds minus your purchase price, rehab, and carrying costs. Positive means you get money back. The BRRRR goal is to recover 100% (infinite return) or close to it.

DSCR: Debt Service Coverage Ratio. Most conventional and DSCR lenders require rent ≥ 1.20× the monthly P&I payment. Below 1.0x means the property doesn’t cover its own mortgage — a red flag for both lender qualification and cash flow.

Gulf Coast BRRRR Considerations

Verify ARV with closed comparables — not active listings, not Zestimate. Pull closed sales within the last 6 months, similar bed/bath count, within 0.5 miles if possible. Your refinance appraisal will be based on these same comparables; an inflated ARV is the most common BRRRR failure point.

Build contingency into rehab — Gulf Coast humidity means hidden moisture issues are common in distressed properties. A 15% contingency is the minimum; use 20% for properties vacant more than 12 months or with unknown history.

Confirm flood zone before acquisition — at msc.fema.gov. A property in an AE or VE flood zone has materially higher insurance costs that change the cash flow analysis post-refinance.

This calculator provides estimates for planning purposes only. It does not constitute financial, investment, or legal advice. Consult a licensed Alabama mortgage lender and CPA before any investment decision. ARV estimates require verification by a licensed appraiser.

Have a deal you want to walk through?

I work with BRRRR investors across Baldwin and Mobile counties and can provide local comps to pressure-test your ARV, connect you with DSCR lenders for the refinance, and help you find distressed inventory before it hits the MLS.

Get in Touch →

Milton Christ, REALTOR® | naf Cash Certified | Keller Williams Alabama Gulf Coast | AL License #172097