The rehab analyzer is used to determine the maximum purchase price you should offer for a property.
One of the variables used to determine the maximum purchase price is the rehab profit.
The Rehab Profit is the amount of profit you want to make on the project based upon your investment criteria and profit goals.
Inputting and Calculating Rehab Profit
You have 3 different options for calculating or inputting your rehab profit.
The 1st option is to calculate the rehab profit using the pre-defined profit buttons, from 5% to 30%. By simply clicking the profit buttons, you can quickly toggle between profit % to calculated the rehab profit.
Another option is to input your own custom profit % in the yellow cell in the right hand corner.
In both of these scenarios the profit % is multiplied by the estimated after repair value of the property.
The last option is to input a lump sum profit amount by simply inputting the exact dollar amount of profit you want to make a on the property.
Below the total profit amount, you will see investment metrics, such as profit per month, CASH ROI & Annualized ROI.
The Profit Per Month is calculated by dividing the Total Rehab Profit by the Total Holding Period.
The cash ROI is calculated by dividing the Total Rehab Profit by the Total Cash Outlay. The cash ROI is then annualized to get the annualized ROI.