BRRRR — Buy, Rehab, Rent, Refinance, Repeat — turns one chunk of capital into a recurring portfolio engine. The math only works if your purchase price plus rehab budget refinances out at < 75% LTV against the new appraised value, leaving you with strong cash flow and most of your money back.
This walkthrough takes a real Chicago 2-flat and gets you from address to deal score in under five minutes using the Prop-Folio iOS app. Same workflow applies to Bronzeville, Woodlawn, Humboldt Park, or any Chicago BRRRR.
The BRRRR math in one paragraph
BRRRR's whole strategy is to recycle your capital. You buy distressed, fund the rehab out-of-pocket or with hard money, season the property as a rental for 3–6 months, then refinance into a long-term loan at 70–75% LTV against the post-rehab value (the ARV). If the refinanced loan covers your all-in basis — purchase + rehab + carry — you've pulled your money back out and now hold a cash-flowing rental with infinite return.
The 2-flat we'll analyze
Subject property: a vintage 2-unit in South Shore, Chicago. List price $185,000. Both units are 2 bed / 1 bath with original kitchens and baths. Needs a full mid-tier rehab — kitchens, baths, paint, refinish hardwoods, mechanicals updated, roof OK. Asking rents in the neighborhood for renovated 2 bed / 1 bath: $1,475–$1,650.
Step 1 — Enter the address (30 seconds)
In Prop-Folio, paste the address. The app pulls property data automatically: bed/bath count, square footage, year built, and a market value estimate. RentCast-backed rent comps populate per unit. You don't type any of this — it loads from the address.
Step 2 — Pick BRRRR and set your purchase (45 seconds)
Switch the strategy to BRRRR. The Purchase card asks for three numbers: price ($185,000), closing costs (estimate 2.5%, so $4,625), and your acquisition financing — usually hard money at 10–12% interest, 2–3 points, 80% LTV. The app calculates monthly carry costs while you hold during rehab.
Step 3 — Build the renovation budget (90 seconds)
The Renovation tab has 12 categories. For a mid-tier 2-flat rehab in Chicago, expect:
- Kitchens (×2): $18,000–$22,000 total at mid-tier finishes
- Bathrooms (×2): $9,000–$12,000 total
- Refinish hardwoods + paint (interior): $7,000–$9,000
- Electrical updates + can lights: $5,000–$8,000
- HVAC service + new water heater: $3,500–$5,000
- Misc + permits + contingency: 10–15%
Total mid-tier 2-flat rehab in this neighborhood: roughly $55,000–$72,000. Prop-Folio adds your contingency on top and cascades the total into your all-in basis automatically.
Step 4 — Set rent and operating expenses (45 seconds)
RentCast comps for renovated 2 bed / 1 bath in 60649 land around $1,550/unit. Two units = $3,100/month gross. Operating expenses for a Chicago 2-flat:
- Property tax: ~2.0–2.5% of assessed value annually (verify Cook County)
- Insurance: $1,800–$2,400/yr
- Vacancy reserve: 6–8%
- Repairs & maintenance: 8–10% of gross rent
- CapEx reserve: 5–8%
- Property management: 8% if outsourced, $0 if self-managed
Step 5 — Set the refinance
BRRRR refinances are typically 30-year fixed, 70–75% LTV against the as-stabilized appraised value. The Refi card asks for your projected ARV (the post-rehab appraised value), refinance LTV, the interest rate (7.0–7.5% for an investor DSCR loan today), and amortization.
The deal works when Cash Left In post-refi is < 25% of total cash invested and Post-Refi Cash Flow is positive. Prop-Folio shows both numbers as you adjust.
What the deal score tells you
PropScore weights BRRRR scoring toward Cash Left In, Recouped %, and Post-Refi Cash Flow. A 4.0 or better on BRRRR usually means you'll get most of your money back AND have at least $200/month cash flow per unit. Anything below 3.4 usually means the rehab budget or ARV is too aggressive.
Common Chicago BRRRR mistakes
Underestimating rehab on vintage 2-4 units
South Shore, Bronzeville, Humboldt Park, and Woodlawn have a lot of pre-1940 housing stock. Galvanized plumbing, knob-and-tube electrical hiding in the walls, and unreinforced basements can blow your contingency. Use 15% contingency, not 10%.
Comping ARV against retail finishes you can't afford
Just because the renovated 2-flat down the street sold for $310k doesn't mean yours will. If your finish level is mid-tier and the comp had high-end appliances + designer tile, your ARV is closer to $260–$280k.
Forgetting Chicago property tax reassessment
Cook County reassesses every three years. If you buy a non-stabilized property at $185k, your future tax bill could be reset based on the post-rehab value. Plug a higher number than you'd expect.
Try it on your own deal
Prop-Folio is free to try on up to 3 saved properties — no card required. Full-Access plans start at $9.99/mo (Starter) and go up to $29.99/mo (Top), with annual pricing at $129/yr (Mid) or $249/yr (Top). All Full-Access plans unlock unlimited saved properties and all four strategies including Short-Term Rental — the tiers differ only in the monthly credit + AirToken allowance.
Want help on your next deal? Send us your numbers — we'll walk through it with you.