Plug in ARV, rehab budget, and financing.
Use the actual asking or negotiated price — not a wishlist number.
Recent comps within about a mile — not a wishlist number.
Materials, labor, and permits — before any markup.
Total time from purchase to your expected sale close.
Short-term financing from a private lender, priced above a mortgage. Enter 0 for an all-cash deal.
Title, escrow, and lender fees due when you buy.
Cushion for cost overruns — contractor quotes are rarely exact.
Taxes, insurance, and utilities on the property.
Agent commission plus closing costs when you sell.
You cover the remainder in cash.
Approximates rehab draws paid out over time, instead of accruing interest on the full loan from day one.
Net profit
$47,300
Cash-on-cash
47.0%
Annualized
94.0%
A quick offer ceiling investors use as a sanity check: don't pay more than 70% of ARV minus rehab costs.
Point estimates hide risk. Here's the same deal under pressure.
| Scenario | Profit | Verdict |
|---|---|---|
Base case Your numbers as entered | $47,300 | Profitable |
Conservative ARV −5%, rehab +15%, +1 month | $17,932 | Profitable |
Stress ARV −10%, rehab +30%, +3 months | -$13,905 | Loses money |
Start with your purchase price and an after-repair value pulled from recent comparable sales within a mile of the subject property. Rehab budgets are where most deals go wrong: contractors quote optimistically, and a 15% contingency is the minimum a disciplined operator carries. Financing here assumes interest-only hard money drawn progressively against the rehab schedule — which is how these loans actually work, not a full-balance loan accruing from day one.