BRRRR Calculator — Kansas City, MO

Kansas City straddles two states with different tax structures, creating arbitrage opportunities for BRRRR investors. The Missouri side generally offers lower property taxes while the Kansas side has stronger school districts supporting higher ARVs.

Median Price

$240,000

Rent Yield

7.8%

BRRRR Entry

$100,000

Target neighborhoods: Waldo, Brookside, Midtown, Northeast KC, Independence

Local tip: Focus on the Missouri side for BRRRR — lower property taxes improve cash flow, and investor-friendly landlord laws reduce risk during the hold phase.

Numbers below are pre-loaded with typical Kansas City market data. Adjust to match your specific deal.

Also analyze deals in St. Louis, Indianapolis, or Cleveland.

BRRRR Calculator

Buy, Rehab, Rent, Refinance, Repeat — decision-grade analysis

Compare Scenarios
Deal Inputs
$

What you're paying for the property before rehab.

$

Total renovation cost estimate before contingency.

$

What the property will be worth after renovations, based on comparable sales.

$

Expected monthly rental income from the property.

%

Percentage of purchase price paid upfront.

%

Loan-to-value ratio for the refinance. Most investors target 75%.

%

Interest rate on the long-term refinanced loan.

Capital Recovery Rate

100.0%

Percentage of your total invested cash recovered through refinance. 80%+ is strong. Below 60% means significant capital stays trapped.

Monthly Cash Flow

-$283

Net monthly income after all expenses and the refinanced mortgage payment. This is what hits your bank account each month.

DSCR at Refinance

0.71

Debt Service Coverage Ratio — net operating income divided by annual mortgage payment. Lenders typically require 1.0+ and prefer 1.25+.

Warnings

🟡 Cost basis is high relative to ARV — thin margin for value-add

Your all-in cost (purchase + rehab) is 76% 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

Cash at closing$24,600
Loan amount$80,000
Monthly payment (rehab)$7,108

Rehab

Total rehab cost (w/ contingency)$40,250
Carrying costs (total)$29,912
Carrying costs (monthly)$7,478

Refinance

Appraisal used by lender$185,000
New loan amount$138,750
Cash returned at refinance$94,781
Cash left in deal-$20
New monthly payment$970

Cash Flow (Annual)

Effective gross income$14,904
Operating expenses$6,660
Net operating income$8,244
Debt service$11,642
Annual cash flow-$3,398

Returns

Total cash invested$94,762
Capital recovery rate100.0%
Cash-on-cash return
Cap rate4.5%
DSCR0.71
IRR29.5%

Sensitivity Analysis

ARV Variance

-20%
71% recovery-$89/mo
-15%
78% recovery-$138/mo
-10%
86% recovery-$186/mo
-5%
93% recovery-$235/mo
Base case
100% recovery-$283/mo
+5%
107% recovery-$332/mo

Rehab Overrun

Base case
100% recovery-$283/mo
+20%
92% recovery-$283/mo
+30%
89% recovery-$283/mo
+50%
82% recovery-$283/mo

Rent Variance

-15%
100% recovery-$449/mo
-10%
100% recovery-$394/mo
-5%
100% recovery-$339/mo
Base case
100% recovery-$283/mo
+5%
100% recovery-$228/mo

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 · $100,000 — $24,600 cash at closing

Rehab Complete

Month 4 · $40,250 total rehab cost

Tenant Placed

Month 5 · $1,350/mo rent starts

Seasoning Met

Month 6 · 6 months — eligible for full-ARV refinance

Refinance

Month 6 · $94,781 returned, -$20 left in deal

Year 1

Month 12 · -$3,398 annual cash flow

Month 0: Purchase$100,000 — $24,600 cash at closing

Month 4: Rehab Complete$40,250 total rehab cost

Month 5: Tenant Placed$1,350/mo rent starts

Month 6: Seasoning Met6 months — eligible for full-ARV refinance

Month 6: Refinance$94,781 returned, -$20 left in deal

Month 12: Year 1-$3,398 annual cash flow

Capital Recovery Waterfall

Show data table
CategoryAmount
Total Invested-$94,762
Recovered at Refi$94,781
Cash Flow Y1-$3,398
Equity Y1$6,829
Net Position-$3,378

Sensitivity: ARV vs Rehab Overrun

ARV+0%
Rehab Overrun+0%
Rent+0%
Capital Recovery100.0%
Monthly Cash Flow-$283
DSCR0.71