📊 Perspective and Practical Advice

✅ Healthy Fix-to-Rent Targets

• Equity at Stabilization: Aim to finish with at least 10%–15% equity after rehab and closing costs (your cushion for refi/appraisal variance).
• LTC (Loan-to-Cost) under 90% to avoid over-leveraging during the rehab phase.
• LTV (Loan-to-Value) on the finished property under 70%–75% of ARV to preserve equity and improve refinance options.
• Optional if underwriting rental income: Target DSCR ≥ 1.20–1.25 and cash reserves of 4–6 months PITI.

📏 Rules of Thumb to Evaluate a Fix-to-Rent Deal

The 75% BRRRR Guideline (Quick Screen)
After-repair value × 0.75 should roughly cover your all-in basis (purchase + rehab + closing + reserve) if you plan to refinance and hold.

Formula:
Target All-In Basis ≤ ARV × 0.75

Example:
ARV = $315,000 → Target All-In Basis ≤ $236,250

✅ How to Use These Calculators Wisely

• Be conservative on ARV and rent assumptions; generous on rehab, carrying, and reserves.
• If your equity cushion drops below ~10%–15% or liquidity looks thin, reassess:
  • Purchase price — can you negotiate it down?
  • Scope of rehab — can you trim without hurting durability/CapEx?
  • Timeline — can you shorten holding to reduce carrying costs?

💡 Use these tools not just to find good rentals, but to avoid thin-margin, high-risk ones.

🔁 Reverse-Engineer the Deal

Instead of forcing a purchase price to “fit,” start with your target outcome and work backward. For Fix-to-Rent, you can reverse from a desired equity cushion (or target profit before refi) to a Maximum Allowable Purchase Price (MAP) that keeps the deal safe.

💡 Pro Tip: Try setting a target equity/profit (e.g., 15% of ARV) and use the reverse section to test combinations of ARV, rehab, and costs until your MAP supports that target.

Fix to Rent — Qualifying Loan

LTP/LTR with LTC/LTV caps (same matrix as Fix & Flip).

💸 Estimated Cash to Close

Prefilled from Step #1. Edit defaults if needed, then calculate.

🏗️ Monthly Carrying Costs

Estimate the true cost of holding the property during rehab and marketing.

💵 Net Profit Estimator

Estimate your bottom line before you commit to the project.