The direct answer
BRRRR refinance proceeds depend on the appraised property value, permitted loan-to-value ratio, lender underwriting, closing costs and payoff of existing debt. Cash left in the deal equals investor cash invested before refinance less cash returned through refinance, adjusted for other relevant cash flows.
Project refinance proceeds conservatively
Estimate supported post-rehab value and apply the lender's actual LTV and debt-service restrictions. Refinance proceeds are not guaranteed from a target appraisal.
To apply the approach to an editable scenario, use the BRRRR Calculator. For the neighboring question, explore ARV Calculator.
Deduct payoffs and refinancing costs
Gross new loan proceeds are not investor cash returned. Existing acquisition/rehab debt, lender charges and reserves can materially reduce cash released.
Measure unrecovered investment
Total eligible acquisition and rehabilitation cash less net capital recovered through refinancing gives a useful residual-cash measure, but outstanding leverage and future debt service remain.
Worked example
A $300,000 appraised asset at 75% LTV permits a hypothetical $225,000 gross loan. After a $150,000 prior payoff and $5,000 refinance charges, cash released is $70,000. If initial investor cash was $90,000, $20,000 remains invested.
Common mistakes and limitations
Do not subtract the full refinance loan from cash invested when much of that loan simply repays earlier debt.
Refinance eligibility, appraised value, seasoning rules, rates and loan costs are lender-specific and are not predicted by this calculator.
Frequently asked questions
Does 75% LTV guarantee the refinance amount?
No. Underwriting, valuation, seasoning and other lender rules can reduce proceeds.
Can cash left in the deal be zero?
It can be in a model, but leverage and property risk do not disappear.
Sources and further reading
The article’s examples are illustrative arithmetic. The references below provide context for operating, valuation or transaction concepts; they do not endorse the assumptions or the calculator.
- IRS — Publication 527 (2025), Residential Rental PropertyRental income and expense concepts; operating/rental expense context.
- Office of the Comptroller of the Currency — Comptroller's Handbook — Commercial Real Estate LendingNOI, direct capitalization, cap-rate valuation and DCF concepts for commercial real estate.
Read our editorial policy for the scope of these educational methods.