Three numbers changed how I think about realistic BRRRR number:
0.7% monthly rent-to-price ratio separates cash flow from appreciation markets. Below 0.7% you are betting on price growth.
1.25 DSCR threshold most lenders require. If your property does not earn 25% more than the mortgage, DSCR lenders decline. At 7% rates most Charlotte Austin Raleigh properties fall below 1.0.
27.5 years IRS depreciation schedule. A $200,000 building gives you $7,273/year in paper losses. At 24% tax bracket that is $1,745 in real tax savings.
These numbers are not opinions. They are math.
Free calculators I use for all of this:
- Rehab Cost Estimator — renovation budget by room
- DSCR Calculator — check if rent covers the mortgage
- BRRRR Calculator — buy-rehab-rent-refinance-repeat analysis
- Hard Money Calculator — hard money loan costs
- NOI Calculator — net operating income breakdown
Everything at arvcalc.com. No signup, no paywall.
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