BRRRR calculator — Florida

Frequently asked questions

What is BRRRR in real estate investing?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat: acquire a property, improve it, lease it, refinance into a new loan often sized to after-repair value, and redeploy capital. This calculator models interest-only rehab financing and a cash-out refinance at your stated ARV and LTV.

How is refinance cash-out estimated here?

The model applies your refinance LTV to ARV to estimate a new loan amount, then pays off the acquisition loan balance. Proceeds are before closing costs and reserves—add those in your own underwriting.

Will my lender approve these numbers?

No. Outputs are educational; lenders use their own appraisal, DSCR, and underwriting rules. Confirm terms, reserves, taxes, and insurance with your lender before relying on any scenario.

Does this include hurricane or flood insurance?

No. Add expected insurance and reserves in your expense inputs. The calculator does not model hazard zones or carrier requirements for you.

What is a good cap rate in Florida?

Residential cap rates in Florida markets like Tampa, Orlando, and Jacksonville typically run 5–7% as of 2024–2025. South Florida and beach markets compress toward 4–5% due to appreciation expectations and higher prices. Wind and flood insurance costs reduce effective NOI—use your actual carrier quotes in the expenses line.

What DSCR do Florida lenders typically require?

Most DSCR lenders in Florida require a minimum of 1.0, with many preferring 1.20–1.25 for lower rates and better terms. Given Florida's higher insurance costs—especially in coastal counties—underwriting at 1.25 or above leaves room for insurance premium increases without failing coverage thresholds. Confirm requirements with your specific lender.

How should I adapt BRRRR assumptions in Florida?

Anchor stabilized rent to about $1,700/month, then stress rehab timeline, refinance terms, and 0.76% effective property tax. BRRRR outcomes are highly sensitive to actual rehab scope and refinance appraisal.