Why it matters
BRRRR is powerful when the chain works. It is painful when one link is fake. Purchase price, rehab, rent, ARV, refinance terms, and cash left in the deal all have to be modeled before the first closing.
PropLurk take: BRRRR is not magic. It is a sequence of assumptions. If one assumption gets too cute, the whole strategy gets expensive.
- Total cash into deal: $62,000
- Net refinance proceeds after payoff and costs: $46,000
Result: $62,000 - $46,000 = $16,000 cash left in the deal
Usually include
- Purchase costs
- Rehab and contingency
- Stabilized rent
- ARV
- Refinance LTV
- Seasoning rules
- Cash left in the deal
Do not mix in
- Guaranteed refinance proceeds
- Unsupported ARV
- Ignoring refinance costs
- Rent that does not match the finished property
Common ways investors mess this up
- Buying before modeling the refinance
- Underestimating rehab timeline
- Assuming all cash comes back
- Ignoring DSCR after refinance
How PropLurk uses it
PropLurk keeps purchase, rehab, rent, refinance, and post-refi cash flow in one connected BRRRR record.
This guide is educational and does not provide investment, lending, tax, legal, or appraisal advice. Verify the specific property, lender, and local rules before making decisions.
Model the refinance before you buy.
PropLurk keeps the definition, formula, assumptions, offer, and decision record connected so the number does not get lost in another spreadsheet.