GuideThe deal
Analyze the deal
Type the purchase price, ARV, and target profit to see projected profit and the most you should pay.
- Where it is
- A house › Deal › Analysis
- Who can use it
- Owners and admins edit. Team members on the house can read it.
Analysis answers two questions: what will this house make, and what is the most you can pay for it. You type four numbers. The rehab and hold figures come from the rest of the house, so the answer keeps up as the budget and the loan change.
Example
After repair value
$289,000
$190/sq ft
Purchase price
$160,000
55.4% of ARV
Projected profit
$21,093
7.3% of ARV
70% rule
80.7%
Purchase + rehab is over 70% of ARV.
Enter the numbers
- Step 1: Open the house and choose Analysis under Deal. On a phone, tap More, then Analysis.
- Step 2: Under Edit the numbers, fill in ARV estimate, Purchase price, Selling cost estimate, and Target profit.
- Step 3: Watch MAO and 70% rule change as you type.
- Step 4: Choose Save worksheet. The tiles, the math tables, and the four numbers at the top of the house update after you save.
160000 or 160000.50. A dollar sign or a comma is refused with “Enter a dollar amount with up to 2 decimal places.”Target profit is your goal. It is never the same thing as Projected profit, which the app works out.
Where rehab and hold come from
You don't type rehab or hold on this page. They are read-outs:
- Rehab is the budget with contingency, from Budget. Once spending passes the budget, it becomes what you've spent.
- Hold is the Projected hold cost you set on the house (taxes, insurance, utilities) plus Loan costs.
- Loan costs are the points, fees, and interest on the loans you add under Financing.
To set the hold, open the house's Home, choose Edit property, and fill in Holding months and Projected hold cost. Interest only counts once Holding months is set.
Read the math
Two tables under the tiles show every line, so you can check the answer instead of trusting it.
Example
Projected profit
Exit − purchase − rehab − hold − selling
- ARV
- $289,000.00
- Purchase price
- − $160,000.00
- Rehab (budget, with contingency)
- − $73,260.00
- Hold (estimate, with loan costs)
- − $17,306.65
- Selling costs
- − $17,340.00
- Projected profit
- $21,093.35
Max offer
ARV − rehab − hold − selling − target profit
- ARV
- $289,000.00
- Rehab (budget, with contingency)
- − $73,260.00
- Hold (estimate, with loan costs)
- − $17,306.65
- Selling costs
- − $17,340.00
- Target profit
- − $20,000.00
- Max offer
- $161,093.35
Dana paid $160,000 for the example house. The max offer works out to $161,093.35, so the page reads “You paid $1,093.35 under the max offer.” Buy at the max offer and finish on budget, and projected profit equals your target profit.
The two 70% figures
The page shows the 70% rule two ways, and they are different numbers:
- The 70% rule tile is a percent: purchase plus rehab, divided by ARV. For the example it is 80.7%, so the tile says “Purchase + rehab is over 70% of ARV.”
- The 70% rule read-out in the worksheet is a dollar price: 70% of ARV minus rehab, $129,040.00 for the example.
Both are rules of thumb. MAO is the better number because it uses your real hold, selling costs, and target profit.
Add comps
- Step 1: Scroll to Comps.
- Step 2: Fill in Comp address and Comp sale price. Comp notes is the place for beds, baths, square feet, and when it sold.
- Step 3: Choose Add comp.
Comps are your evidence for the ARV. They are not averaged into it; you decide the ARV and type it.
Print it
Print puts the worksheet and the comps on one letter sheet. For something to hand a lender, use the lender report instead.