The numbers · BRRRR calculator · Capital
The refinance is the exam.
Buy, rehab, rent, refinance — then see how much of your pile comes back, how much equity you created, and whether the property survives the new loan.
Inputs
Purchase price$120,000
Rehab budget$30,000
Carry + closing costs$9,000
After-repair value (ARV)$210,000
Refinance LTV75%
Refinance rate7.00%
Monthly rent$1,750
Monthly operating costs$700
The 75% anchor: all-in (purchase + rehab + carry) at or below the refinance LTV × ARV returns your full investment. DSCR uses the post-refi loan — the exam that decides everything.
Where the money lands at the refinance
All-in cost
$159k
Refi loan (returns cash)
$158k
Cash left in deal
$2k
Equity you keep
$53k
All-in vs ARV
76%
75% is the full-return line
Cash left in
$2k
1% of your capital stays
Post-refi DSCR
1.00
$2/mo cashflow at the new loan
The verdict
The refinance fails the exam: at 1.00 coverage the post-refi payment doesn't clear honest rents. Either the purchase price is too high or the leverage is — a lender will say the same thing less politely.
Refi loan$158k
New payment$1,048/mo
Equity created$53k
Annual NOI$13k