BRRRR Calculator — Detroit, MI
Detroit has the highest gross rent yields of any major US market but requires careful neighborhood selection. The spread between purchase price and ARV can be massive, but so can rehab scope — many properties need full mechanicals.
Median Price
$150,000
Rent Yield
10.2%
BRRRR Entry
$55,000
Local tip: Stick to the 5-mile radius around Midtown and Corktown for the most reliable ARV appreciation. Outer neighborhoods may have higher yields but much higher vacancy and longer tenant placement times.
Numbers below are pre-loaded with typical Detroit market data. Adjust to match your specific deal.
BRRRR Calculator
Buy, Rehab, Rent, Refinance, Repeat — decision-grade analysis
This deal does not work as a BRRRR — refinance math does not support full capital recovery.
DSCR of 0.64 means rental income does not cover the refinanced mortgage. The deal loses money every month after refinancing.
Capital Recovery Rate
92.4%
Percentage of your total invested cash recovered through refinance. 80%+ is strong. Below 60% means significant capital stays trapped.
Monthly Cash Flow
-$229
Net monthly income after all expenses and the refinanced mortgage payment. This is what hits your bank account each month.
DSCR at Refinance
0.64
Debt Service Coverage Ratio — net operating income divided by annual mortgage payment. Lenders typically require 1.0+ and prefer 1.25+.
Warnings
🔴 DSCR below 1.0 — this deal does not cash flow after refinance
The Debt Service Coverage Ratio is below 1.0, meaning rental income does not cover the mortgage payment after refinancing. Most lenders will not approve this refinance, and if they do, you will lose money every month.
Increase rent, reduce purchase price, or find a property with a lower ARV-to-price ratio to improve cash flow after refinance.
Compare DSCR lender options→
🟡 This deal depends on hitting your ARV target
The capital recovery projection assumes the property appraises at your estimated ARV. If the appraisal comes in lower, your refinance proceeds drop and more cash stays in the deal.
Review the ARV sensitivity panel to see how a 10-15% miss affects your position. Get comparable sales data to validate your ARV estimate before committing.
🟡 Cost basis is high relative to ARV — thin margin for value-add
Your all-in cost (purchase + rehab) is 79% of ARV. Successful BRRRRs typically target 70-75% or lower. The tighter this ratio, the less room for error.
Negotiate a lower purchase price or find a property where the rehab creates more value relative to cost.
Deal Breakdown
Purchase
Rehab
Refinance
Cash Flow (Annual)
Returns
Sensitivity Analysis
ARV Variance
Rehab Overrun
Rent Variance
This analysis is an estimate based on the inputs you provided. Actual results will vary. Not financial advice. Consult qualified professionals before making investment decisions.
BRRRR Timeline
Purchase
Month 0 · $55,000 — $13,530 cash at closing
Rehab Complete
Month 4 · $40,250 total rehab cost
Tenant Placed
Month 5 · $1,000/mo rent starts
Seasoning Met
Month 6 · 6 months — eligible for full-ARV refinance
Refinance
Month 6 · $65,543 returned, $5,354 left in deal
Year 1
Month 12 · -$2,752 annual cash flow
Month 0: Purchase — $55,000 — $13,530 cash at closing
Month 4: Rehab Complete — $40,250 total rehab cost
Month 5: Tenant Placed — $1,000/mo rent starts
Month 6: Seasoning Met — 6 months — eligible for full-ARV refinance
Month 6: Refinance — $65,543 returned, $5,354 left in deal
Month 12: Year 1 — -$2,752 annual cash flow
Capital Recovery Waterfall
Show data table
| Category | Amount |
|---|---|
| Total Invested | -$70,897 |
| Recovered at Refi | $65,543 |
| Cash Flow Y1 | -$2,752 |
| Equity Y1 | $4,430 |
| Net Position | -$8,105 |
Sensitivity: ARV vs Rehab Overrun
| ARV ↓ / Rehab → | Base | +10% | +20% | +30% | +50% |
|---|---|---|---|---|---|
| -20% | 68% | 64% | 61% | 58% | 53% |
| -15% | 74% | 70% | 66% | 63% | 57% |
| -10% | 80% | 76% | 72% | 68% | 62% |
| -5% | 86% | 82% | 77% | 74% | 67% |
| Base | 92% | 87% | 83% | 79% | 72% |