After Repair Value (ARV)

The estimated market value of a property after its rehab is complete. If no repairs are necessary, the after repair value is the same as the current market value.

For BRRRR deals, the ARV will be used when calculating long-term financing during the refinance phase.

When flipping a property, the ARV will be used as the sale price when calculating the total profit.

All recurring expenses you will incur while rehabbing a property during a flip.

Examples include: property taxes, insurance, utilities and landscaping.

You can enter holding costs as a monthly or yearly amount. Do not enter loan payments when adding holding costs, as they will be automatically added for you based on the financing information.

All expenses you will incur while renting out a property, excluding any loan payments.

Examples include: property taxes, insurance, property management fees, maintenance, capital expenditures and utilities.

You can enter operating expenses as a monthly or yearly amount, as a percentage of the purchase price, or as a percentage of the gross rent that either accounts for vacancy or ignores it.

The actual current value of a property.

The market value is not necessarily equal to the purchase price.

For example, if you are able to negotiate a discount with the seller, the market value will be higher than the purchase price.

Some lenders and loan programs require you to pay mortgage insurance, which is typically calculated as a percentage of the loan amount.

In some cases, it is a one-time upfront payment that gets added to the original loan amount.

Other times it is a recurring payment that is added to your monthly loan payment.

Any miscellaneous income you expect to receive from a rental property, other than rent.

Examples include: coin-operated laundry, parking fees and storage rental.

You can enter other incomes as a monthly or yearly amount.

All costs and fees associated with purchasing a property, sometimes also called closing costs.

Examples include: appraisal fees, property inspection, finder's fees and loan points.

You can enter purchase costs as a set amount or as a percentage of either the purchase price or the loan. You can also roll them into the loan, if you are using financing.

All costs and fees associated with refinancing a property, sometimes also called closing costs.

Examples include: appraisal fees, lender fees, recording fees and loan points.

You can enter refinance costs as a set amount or as a percentage of either the after repair value or the loan. You can also roll them into the loan instead of paying them up front.

Expenses that you expect to incur after purchasing a property to improve its condition or perform repairs.

Examples include: new paint, new appliances, new carpet, electrical repairs, landscaping and cleaning.

You can choose to finance all or part of the rehab costs when analyzing properties.

The total rent collected from your tenants, before subtracting any operating expenses or accounting for vacancy.

All costs and fees associated with selling a property, sometimes also called closing costs.

Examples include: real estate broker commissions, escrow fees, transfer taxes and a home warranty.

You can enter selling costs as a set amount or as a percentage of the sale price.

The price of the property you are purchasing.

The purchase price does not include purchase or rehab costs.