The Rehab Valuator is a real estate investing program that analyzes properties for flipping, wholesaling or renting. The Rehab Valuator is a great tool and the lite version is absolutely free. It helps you estimate repairs, calculate financing costs, figure returns and profits. I am constantly writing about the costs involved in flipping because so many beginners underestimate them. The Rehab Valuator program does a great job of figuring all the costs for you and even figures the 70 percent rule, which many flippers go by.
How can the Rehab Valuator Software help fix and flippers?
The Rehab Valuator Software is extremely easy to use. Daniil Kleyman created the program, who is an extremely experienced real estate investor. He has invested in many rentals, flips, and commercial projects. The program helps fix and flippers in a number of ways including determining financing costs, figuring repairs, determining closing costs and carrying costs. When I first tried out the program I was able to determine the potential profit on one of my flips in about five minutes.
The program is in an excel sheet that prompts you to enter the important data on a flip; loan terms, repair estimates, length of the rehab, purchase price, closing costs, selling costs and after repaired value. The form gives pre-populated values and percentages for common costs of these items and is very accurate in my experience. The program then tells you the potential profit, the cash needed and the return on your investment.
- Financing costs: The program is great for flippers, because they have many features built in for hard money loans. You can choose a loan amount based off the ARV, you can choose the points to be paid when you sell the house like you would with hard money. If you have other types of financing, then that can be entered into the program as well, but it is a little trickier. I could not find a way to enter a loan to value amount on the purchase price, but I could adjust the percentage of the ARV loan percentage until I reached my loan amount.
- Repair costs: The program has a separate page just for repair costs on flips. The program does not give you common costs for repairs, which is understandable since costs can vary so much depending on the scope of work and your location. The form lists many repairs that would need to be done; you enter a dollar amount for the repairs, a time frame to complete them and the form computes the repairs and time frames into the entire equation.
- Carrying costs and selling costs: Many investors forget about carrying costs when flipping homes. You have to account for insurance, taxes, utilities, and maintenance when you hold a property for months. The Rehab Valuator lets you input all the holding costs as a lump sum or enter each cost on a monthly basis. The program then calculates the costs based on the number of months you will hold the property. The program also lets you enter the selling costs as a percentage of the selling price. Those costs would include commission, title insurance, recording fees and a few more.
- Profit: When you enter all the data into the program, it gives you a total profit number and return on your investment. I used numbers for a flip I am almost done with and my profit came out to $68,000 and a 78 percent return on my investment. I like those numbers and I will detail this flip in my fix and flip update articles. The great thing about the profit number is you can change financing terms or length of time you hold the property to instantly see how much your profit changes. The program even has a spot where you can enter a percentage of the profit to be spit with the lender or an investor.