BRRR Deal Analyzer - US Market

How to Use the House Flip Deal Analyzer

1. Select Your Market Area

Choose your target market from the dropdown menu. The system will automatically retrieve the latest typical benchmark price and determine standard estimated market rents for that area.

2. Adjust Your Property Inputs

The benchmark data will populate the fields, but you can modify the inputs to match your specific target property:

• Purchase Price: The estimated cost to acquire the property (pre-filled from benchmark data).
• Rehab Cost: The estimated capital required to bring the property up to standard rental condition.
• Market Rent: The expected monthly gross rent (partially pre-filled based on regional market values).

3. Calculate the Deal

Click the Calculate button to run the financial engine and see the metrics.

Understand Your Deal Scorecard

The scorecard breaks down the financial viability of your investment using standard underwriting criteria:

After Repair Value (ARV):

The estimated future market value of the property once repairs and improvements are complete (calculated as $1.20 \times \text{Typical Price}$).

Maximum Allowable Offer (MAO):

The highest price you can pay while ensuring profitability and accounting for rehab costs, calculated as:

MAO = (ARV x 0.70) - Rehab Cost

Refi Loan (75%):

The potential capital you can recover via a cash-out refinance upon stabilization, representing 75% of the ARV.

Debt Service Coverage Ratio (DSCR):

The relationship between your gross rental income and your debt payments.

Verdict Definitions

Excellent Cashflow Market (DSCR > 1.25):

This metric indicates that rental income comfortably covers debt service and operating expenses, generating positive returns.

Tight Margins (DSCR < 1.25):

The rental income does not fully cover the debt load under standard stress conditions, meaning the property relies on market appreciation to yield overall long-term returns.

Data Sources & Transparency

Zillow Home Value Index (ZHVI):

Provided by the Zillow Home Value Index, representing typical single-family and multi-family home market valuations. A measure of the typical home value and market changes across a given region and housing type. It reflects the typical value for homes in the 35th to 65th percentile range. Available as a smoothed, seasonally adjusted measure and as a raw measure. Zillow publishes top-tier ZHVI ($, typical value for homes within the 65th to 95th percentile range for a given region) and bottom-tier ZHVI ($, typical value for homes within the 5th to 35th percentile range for a given region). Zillow also publishes ZHVI for all single-family residences ($, typical value for all single-family homes in a given region), for condo/coops ($), for all homes with 1, 2, 3, 4 and 5+ bedrooms ($).

The Zillow Observed Rent Index(ZORI):

The Zillow Observed Rent Index provides the baseline monthly rental income for comparable properties in the selected market. A smoothed measure of the typical observed market rate rent across a given region. ZORI is a repeat-rent index that is weighted to the rental housing stock to ensure representativeness across the entire market, not just those homes currently listed for-rent. The index is dollar-denominated by computing the mean of listed rents that fall into the 35th to 65th percentile range for all homes and apartments in a given region, which is weighted to reflect the rental housing stock. ZORI is created for three different categories: All homes, Single Family Residences, and Multi-Family Residences. For more detailed information, you can refer to the ZORI methodology.

**For Canadian Markets Only**

CMHC / CREA Benchmark Data:

Canadian benchmark data is gathered annually and refreshed quarterly to provide accurate, up-to-date inputs for local markets.