Using the Wholesaling Rental Calculator

1 Reply

I need to analyze a rental property with an ARV of $91K. The property owner is asking $$69.3K and is rented and needs very little repairs. The current rent being paid is $625 but the rent should be $725 (Rentometer). When doing the input in the Wholesaling Rental calculator should I base the loan on the ARV (as the calculator suggests) or on what the property owner is asking. Also, for the rent, should I input what the property owner is currently collecting or on what the rent should be?

Thank You

Hi Doug,

I think I have run into the same issue you might be eluding to.  The metrics used to analysis a rental wholesale deal can be attacked from different perspectives and if the proper perspective is not identified the result could become quite questionable.

@Brandon Turner - Hi Brandon, I'm truly enjoying what I have used and experienced on BP thusfar.  However, I think a potentially serious logic error make be in the Wholesaling Calculator (which is needed and should be maintained).

For example a rental wholesale can be measure by any one of the following:

- Cash-on-Cash (cash purchase)

- Cash-on-Cash (loan purchase) **note: I have not figured out a logical approach to this one yet

- Cap Rate-with-Purchase (NOI, 50%-Rule for expenses, and market rent [cash purchase])

- Cap Rate-with-Loan (NOI, 50%-Rule for expenses, market rent, Cap Rate, and debt coverage [leveraged purchase])

I have a rudely designed spreadsheet to do all three (3). I will attempt to clean it up and share it in the "cloud" so you and other can critique its output.

Yours in success,

-Eric