What It Does
Works backward from your After Repair Value to tell you the most you can pay for a property and still hit your target return. You plug in ARV and rehab cost; it calculates your Acquisition Price (AP) using your cash requirement and return assumptions. The Advanced panel lets you dial in rate of return, hold time, interest rate, points, other costs, and cost of sale.
How to Use It
- Enter your arv from comps research.
- Enter your Rehab Cost from your line-item scope.
- Read the red banner: that is your max purchase price.
- Click Advanced to adjust financing assumptions: rate of return (default 15%), hold time (default 6 months), interest rate, points, other costs, and cost of sale.
When You Need This
- Running deal analysis on a new lead before making an offer.
- Stress-testing a deal at different hold times or interest rates.
- Checking whether a property fits your buy box at asking price.
- Comparing cash needed across multiple potential acquisitions.