Rehabvaluator

[Arthur Banks]

Has anyone purchased the FULL version of Rehabvaluator as seen advertised on this site? What are your thoughts? Worth the purchase?

[J Scott]

I don't know anything about the software, but when it comes to analyzing rehab deals, it's as basic as the following formula:

Profit = ARV - Purchase Price - Rehab Costs - Fixed Costs

If you know 4 of the 5 variables, you can rearrange the formula to determine the other one (for example, to know your max offer, your max rehab budget, etc).

My guess is that this software (or any software that allows you to analyze a rehab deal) basically just puts a user interface around that formula, and spits out some additional ROI metrics on top of it.

It's nothing you can't do in Excel or on the back of a napkin. In fact, I would highly recommend getting comfortable doing the computations in your head -- it shouldn't take more than 5 seconds to determine your max offer or your profit potential once you have an ARV and the rehab cost estimate.

In fact, I've written a couple BP blog articles on this topic...I'll see if I can dig them up...

EDIT:

Here you go:

http://www.biggerpockets.com/renewsblog/2010/03/10/determining-maximum-purchase-price-mpp/

http://www.biggerpockets.com/renewsblog/2010/03/17/calculating-fixed-costs-flip-rehab-wholesale-real-estate-deal/