How to Use the Rehab Analyzer - The Basics
What is the Rehab Analyzer?
The Rehab Analyzer is used to calculate the maximum purchase price for a property based upon fixed costs, repair costs and desired profit.
Pretty sweet dashboard, but what is all this stuff?
B. Fixed Costs - Buying Costs
The Buying Costs are costs associated with purchasing the property. Input the amount of buying costs that you foresee in the yellow boxes. The 'Closing Costs & Points' row is calculated based upon loan value only.
C. Fixed Costs - Holding Costs
The Fixed Holding Costs are costs that are incurred while holding the property during the rehab and selling period. These monthly costs are carried over from the Property Information Sheet. The Total Holding Costs are calculated by multiplying the Monthly Holding Cost x (Rehab Time + Selling Period).
D. Fixed Costs - Selling Costs
The Fixed Selling Costs are costs associated with selling the property such as Realtor commissions, seller assisted closing costs, home warranties, etc. Simply input your selling cost assumptions in the yellow boxes.
E. Repair Costs by Scope
The Repair Costs Breakdown by Scope gives you a detailed analysis of your repair budget by each scope of work item. This cost information is pulled over from the Repair Cost Calculator.
F. Repair Costs by Labor, Material, Sub
The Repair Cost Budget is further broken down by Labor, Material and Subcontractor costs. This is a handy way to analyze the budget if you have cost history regarding labor, material and sub. For example, our business spends around $16,000 on labor for a typical 3 bedroom, 2 bathroom.
G. Repair Costs by Area
The Repair Costs by Area section gives you an analysis of areas of the home, such as the kitchen, bathrooms, flooring etc...This is helpful analysis tool if you track repairs by area or room. For example, we know our business spends around $3000 per bathroom, so we can evaluate our bathroom budget and determine if we need to decrease or increase it based upon our cost history.
H. Total Repair Costs
The Total Repair Costs gives you at summary of the Total Repair Costs included in your repair cost estimate.
H.i DIYed vs SUBBed
Evaluate your Total Repair Cost Budget by Subbed or DIYed by simply clicking the buttons to toggle between Subbed or DIYed repair budgets. This can be a handy tool, if you are competitively bidding for a house, and will be "DIYing" some work items to get an advantage over your competition.
I. Repair Contingency
Quickly calculate your repair cost contingency by simply clicking the % buttons.
J. Rehab Profit
Quickly calculate Rehab Profit by % by simply clicking the % buttons or by inputting a lump sum $ to determine the profitability of the project. Use the profit analysis to determine the amount of profit required to meet your investment criteria.
K. Maximum Purchase Price
The Maximum Purchase Price is the amount you should offer for a potential investment property.
MPP = ARV - Fixed Costs - Repair Costs - Repair Costs Contingency - Profit
L. 70% Rule
The 70% Rule is a widely accepted rule by rehabbers to quickly determine the Maximum Purchase Price of a property before repairs. The 70% Rule ticker compares the calculated Maximum Purchase Price against the 70% Rule.
M. Project Funding
The Project Funding section gives you a breakdown of how the project is being funded.
N. Total Investment
The Total Investment is the total amount of investment required to fund the project.
Total Investment = Total Fixed Costs + Repair Costs + Repair Contingency + Maximum Purchase Price