BRRRR Cash-Out Refinance and Capital Left In
How much cash a refinance hands back, and how much is still tied up in the deal.
Example
You enter
- Appraised ARV ($) 200000
- Total invested ($) 140000
- Refi LTV (%) 75
You get
- New loan usd 150000
- Cash returned usd 150000
- Capital left usd -10000
Details, formula, and sources
New loan = ARV x refi LTV, cash returned = loan - payoff, capital left = invested - returned; post-refi cash-on-cash = cash flow / capital left (infinite if all recovered). $200K ARV, $140K in, 75% LTV -> $150K out, all capital recovered; $160K in leaves $10K at a 24% return. A screening aid.
new_loan = ARV x LTV%; cash_returned = new_loan - payoff; capital_left = invested - cash_returned; coc = cash_flow / capital_left (infinite if capital_left <= 0).
The BRRRR cash-out refinance and capital-left-in computation used by real-estate investors, by name.
The BRRRR cash-out refinance math (new loan, capital recovered, capital left) is a widely-published real-estate-investing computation.
Estimate. AHJ and licensed professional govern.
Field names used by the API: arv_usd, total_invested_usd, refi_ltv_pct, new_loan_usd, cash_returned_usd, capital_left_usd
- New loan new_loan = ARV x refi LTV; cash_returned = new_loan - payoffBRRRR practice
- Capital left invested - cash_returned; infinite CoC if fully recoveredreal-estate-investing
- Lender rules the appraised ARV and the lender's LTV/seasoning governscope of this tile