BRRRR 70 Percent Rule Explained

June 25, 2026
Two professional male real estate investors seated inside the polished leather interior of a luxury car, parked along the curb of a suburban street. In the background, a residential house is visible with a clear "For Sale By Owner" sign on the lawn. The investors are focused on a digital tablet displaying spreadsheets and financial calculations for a BRRRR strategy, including figures for the 70 percent rule, ARV, and repair estimates. The scene emphasizes a focused, analytical atmosphere within the sophisticated cabin of the vehicle, with natural daylight illuminating the documents and the house outside.

The 70 percent rule is a quick way to estimate the maximum price you might pay for a distressed property. It starts with the property’s expected after-repair value, multiplies that amount by 70 percent, and then subtracts the estimated rehabilitation cost. The result is a preliminary maximum allowable offer. The rule is widely associated with…

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How to Estimate ARV for a BRRRR Property

June 25, 2026

After-repair value, commonly called ARV, is one of the most important assumptions in a BRRRR deal. It influences how much you can pay for the property, how much rehabilitation spending the project can support, how much equity you may create, and how much permanent financing may be available after the work is complete. A strong…

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BRRRR Method Example With Real Numbers

June 25, 2026
A female real estate investor in professional business attire stands at the front of a modern conference room, gesturing toward a large whiteboard. On the board, a detailed breakdown of the BRRRR method is clearly visible, showing organized columns for purchase price, rehab costs, rent amounts, and refinance figures, along with specific calculations for monthly cash flow and capital remaining. The room is filled with bright, even office lighting, highlighting her confident posture as she teaches her students.

The BRRRR method can sound straightforward when it is reduced to five steps: buy, rehab, rent, refinance, and repeat. The financial outcome becomes less straightforward once you include closing costs, loan fees, holding expenses, operating reserves, refinance costs, and the possibility of a lower appraisal. This hypothetical BRRRR example follows one single-family rental from acquisition…

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