Plan your capital and maximize returns with the help of ABL’s free BRRRR calculator for rental investors.
Your long term rental portfolio strategy begins with understanding the economics. ABL’s Buy Rehab Rent Refinance Repeat calculator helps investors develop a high-level understanding of their expected costs, returns, and cash outlays so they can strategize and deliver accordingly for free.
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Look like a promising deal?
What does BRRRR stand for?
BRRRR stands for buy rehab rent refinance repeat and is a popular method of real estate investing. This investment strategy focuses on acquiring rental property, renovating to increase its value, renting it out to produce monthly income, and refinancing the existing loan to provide capital towards the next property purchase.
How long do BRRRR loans last for?
There are a variety of loan options with 30-year amortizing being the most popular. There are shorter term options available, ranging from as little as 5 years up through the 30-year option.
What is the interest rate for BRRRR loans?
Each lender is different, but interest rates for BRRRR loans typically range between 3.75% and 8%.
Can you refinance a BRRRR loan?
Yes! Refinancing loans is how many BRRRR investors continue to expand their rental portfolio. By refinancing the original loan, they can use the newly acquired capital to purchase their next rental property.
How are BRRRR loans different from fix and flip loans?
BRRRR loans are longer terms than the 12-month interest-only loans that fix and flip investors use. These rental loans focus on the property value and the potential monthly income it could produce, along with factoring in minimum FICO and experience, to determine the loan criteria. Fix and Flip – or bridge loans – also typically have a higher interest rate and are underwritten based on the future potential value of the property after renovations.
What do I need to start my BRRRR loan?
Having a rental property in mind and knowledge of your financials are all you need to start! Already having the property’s title will speed things up but is not required to begin your loan process.
Before Your Rental Investment, Try Our BRRRR Calculator
Investing in rental property is a long-term strategy that requires proper planning to be successful. Running the numbers with our BRRRR calculator can help you reduce risk and ensure that you’re entering a good deal. Its important to run a few sets of numbers, whether its for multiple properties or different rental loan options, so you know exactly what kind of BRRRR loan works best for you.
BRRRR investors need different loan criteria and strategies than fix and flip investors. If you’re new to the BRRRR method of investing, you can still qualify for these rental loans. Contact ABL to discuss what you need to get started with your BRRRR investment.