📊 Perspective and Practical Advice
— Reviewed & Corrected

✅ Healthy Fix-to-Rent Targets (Accurate & Industry-Aligned)

Equity at Stabilization:
Aim to finish with at least 20% minimum equity and ideally ~25% of ARV after rehab and closing costs.

DSCR loans typically max out at 75%–80% LTV. If you can achieve 20%–25% equity after rehab & closing costs, you will likely recover most or all of your cash invested.

LTC (Loan-to-Cost):
Keep total project leverage under 90% LTC to avoid being over-leveraged during rehab.

Refi LTV Expectations (DSCR Take-Out)

• 75% LTV of ARV → Ideal for cash-out DSCR refi. This is the realistic max for most lenders.
• 80% LTV of ARV → Common for rate-and-term refi with documented costs only. Lender typically limits cash back to purchase price + documented rehab receipts (no “cash-out-to-cash-out”).
• Pricing: Rate-and-term refinances typically offer better pricing than DSCR cash-out refinances.

DSCR Targets for Take-Out Loan

• Minimum DSCR: 1.00+
• Pricing improves at ≥ 1.20–1.25

DSCR above 1.25 often unlocks lower rates, reduced fees, and more lender options.

Reserves

Keep 4–6 months PITI as a safe baseline. Many lenders require at least 3 months.

🔧 Rules of Thumb to Evaluate a Fix-to-Rent (BRRRR) Deal

The 75% BRRRR Guideline (Quick Screening Tool)

Your all-in basis should be ≤ 75% of ARV if you want a clean cash-out exit.

Formula:
Target All-In Basis ≤ ARV × 0.75

✅ How to Use These Calculators Wisely

• Be conservative with ARV and rent projections.
• Be generous with rehab, carrying, and contingency reserves.
• If equity drops below the 20%–25% target, reassess:
  • Can you negotiate the purchase price?
  • Can you optimize rehab scope?
  • Can you shorten the hold period to reduce carry costs?

The purpose of these calculators is not just to find winning deals — it's to avoid thin-margin, high-risk deals that collapse in underwriting.

🔁 Reverse-Engineer the Deal (MAP Calculation)

Start with your equity and DSCR targets, then calculate the Maximum Allowable Purchase Price (MAP) that keeps the deal safe.

Pro Tip (Revised for Accuracy):
Set a minimum 20% equity requirement at stabilization, with a preferred target of 25%+ of ARV for stronger refinancing and long-term returns.

Use the calculator to test combinations of:

• ARV
• Rehab cost
• Holding & closing costs
• Financing structure

…until your MAP supports the required 20%–25% equity target.

Fix & Flip / Fix to Rent Calculator

Get your estimated loan amounts based on LTP/LTR with LTC/LTV caps.

💸 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.

💵 Cash Returned to Investor

Estimate your bottom line before you commit to the project.