Free BRRRR refinance calculator: know the appraisal you need before you buy.
Most calculators tell you whether a DSCR loan works at the value you hope for. This one works backward: what does the property need to appraise at for the refinance to hand back every dollar you put in, does the rent carry that loan, and what happens if the appraisal comes in low. One deal, no login, nothing saved.
Enter your deal
WaitingFill in the purchase, rehab, loan and rent fields.
Your cash in the deal
The refinance at your ARV
If the appraisal comes in low
| Appraisal | Max loan | Cash back | Stays in deal | DSCR |
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Appraiser independence. The appraisal target is for your planning only. Lender rules prohibit giving an appraiser a desired value or loan amount, so never share it with an appraiser.
Want the full exit math on a real address?
Send the address, your payoff and the rent, and I will tell you what it needs to appraise at and whether the rent carries the loan. No application needed. Just say no and I will leave you alone.
Why the appraisal, not the ARV, decides a BRRRR exit
When you refinance a rental out of hard money, the new lender sizes the loan on two things: the appraised value times a maximum loan to value, and how much loan the rent can carry. Your ARV estimate never enters that math. That is why investors who budget to their ARV are surprised at the closing table, and why this calculator starts from the other end.
What DSCR is and how lenders calculate it
DSCR stands for debt service coverage ratio. It is the monthly rent divided by the full monthly payment on the new loan: principal and interest, property taxes, insurance and any HOA dues, often written as PITIA. A ratio of 1.00 means the rent exactly covers the payment. Lenders generally use the lesser of the rent on your lease and the market rent the appraiser reports, and each lender sets its own minimum. Because taxes, insurance and dues sit in the same fraction as the interest, a high insurance quote or an HOA can limit the loan as much as the rate.
Why the appraisal decides the exit
To pull every dollar of your own cash back out, the new loan has to cover the hard money payoff, your cash in the deal, and the refinance closing costs. Divide that by the maximum loan to value and you have the appraisal you need. If the property appraises above that number and the rent carries the loan, the refinance recycles your cash. If it comes in below, the difference stays in the property. The stress table shows exactly how much at 5, 10 and 15 percent below your estimate.
Seasoning, in plain language
Most lenders want you on title for some period, commonly three to six months, before they will lend on the new appraised value instead of your purchase price plus improvements. It varies by lender and by how the loan is structured, so ask for the rule in writing before you choose the term of your short term loan. If the maturity date is closer than the seasoning date, plan for that gap on day one.
The three ways a deal gets stuck
- Low appraisal. The comps don't support your ARV, the loan shrinks, and more of your cash stays in. Buy with margin and rehab to what the neighborhood's best sales support.
- Rent limited. The value supports the loan but the rent can't carry it at the lender's minimum DSCR. Higher rent, lower carrying costs, interest only or a longer amortization can move it.
- Payoff too high. Extensions, accrued interest and default fees pile onto the hard money balance. Start the refinance ninety days before maturity.
Read the full breakdown in how to refinance out of hard money before the balloon, see DSCR loan programs, or run a hard money take out.
Questions investors ask
What does my rental need to appraise at to get all my cash back?
Add your hard money or private loan payoff, the cash you have in the deal, and the refinance closing costs. Divide by the lender's maximum loan to value. That is the appraisal needed to recycle 100% of your cash. The calculator above does this for you.
How do lenders calculate DSCR?
Monthly rent divided by the full monthly payment: principal, interest, taxes, insurance and any HOA dues (PITIA). Lenders generally use the lesser of the lease rent and the appraiser's market rent. Each lender sets its own minimum ratio.
What happens if the appraisal comes in low?
The new loan shrinks by the loan to value times the shortfall, so less cash comes back and more stays in the property. The stress table above shows the result at 5%, 10% and 15% below your ARV.
How long do I have to own the property before a cash out refinance?
It varies by lender and structure. Most lenders want you on title for a period, commonly three to six months, before lending on the new appraised value. Ask for the rule in writing before you choose your short term loan's term.
What does rent limited mean?
The appraisal supports a bigger loan than the rent can carry at the lender's minimum DSCR. The loan is sized to what the rent supports. Higher rent, lower taxes or insurance, interest only or a longer amortization can move it.
Irving Arreola · Mortgage Loan Originator · NMLS #2790178
Estimates only. This calculator is an educational tool. It is not an offer of credit, a loan approval, a rate quote, or a commitment to lend. Loan to value caps, DSCR requirements, seasoning rules and rates vary by lender and program, and final terms depend on appraisal, credit, verified rents and underwriting. Business purpose loans on non owner occupied property only. HomeMac, LLC NMLS #1165808. Equal Housing Opportunity.