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.
I don’t review many products on Invest Four More, because I only endorse products I believe in. I have tried out many products that I thought were lacking in substance or extremely overpriced and you don’t hear about those products, because I don’t feel they deserve any publicity. I have tried a out more than a few real estate investing programs and most of them are not worth the money.
How can the Rehab Valuator help fix and flippers?
The Rehab Valuator is extremely easy to use. Daniil Kleyman created the program, who is an extremely experienced real estate investor. 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 that can be entered into the program as well, but it is a little trickier. I could not find a way to enter in 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. Here is a great article on the common costs of repairs on houses.
- 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 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.
How can the Rehab Valuator help wholesalers?
The Rehab Valuator has some great features for wholesalers as well. There is a very simply program to determine what price a wholesaler would have to buy a house at to sell it to an investor who would flip the house. The program is based on the 70 percent rule, which I explain in detail here. Enter the ARV, the repairs and the profit he wholesale takes and you get the price you can pay for the property. The only issue I saw with this calculator was you can enter carrying costs and closing costs, which decrease the offer price even more. In my experience the 70 percent rule works without having to enter holding or carrying costs as additional expenses. You can also adjust the 70 percent value to be 65 percent, 75 percent or whatever value you want.
Another great part of the program is it generates detailed, professional reports that you can give to your investor. You plug in the numbers for the repairs and other costs and the Valuator generates the report that will make you look like a professional. The more information you can give to the investor, the more comfortable they will feel buying a house from you.
How can the Rehab Valuator help with rental properties?
The Rehab Valuator also has a program that calculates returns on rental properties. This program is similar to the flip program as far as the data you enter, but gives different figures for returns, cash flow and lets you include information on refinancing.
- Financing costs: When you enter the loan terms you use the same form as when you entered loan terms for the flip. You can then enter terms for a refinance after you repair the property. This is a nice feature, because it lets you see what your returns and costs would be if you use hard money to refinance into a conventional loan. The only problem with this form is I could not turn off the refinance feature, so if I wasn’t refinancing I have to change the numbers around on the refinance terms to match my original loan. I can change the numbers pretty easily to match my interest rate and loan amount to what the original loan would be.
- Repair costs: You can enter the repair costs just as you would with the flip calculator and it will factor those into your repairs. The program also tells you exactly how much cash you will have invested into the rental property after down payments, repairs and closing costs.
- Cash Flow and Cash on Cash: The rental property program will take all the figures you plug into it and give you cash flow, cash on cash returns, cap rate and even DCR. The DCR is the debt coverage ratio and is a tool many lenders use to evaluate how good of an investment your rental is. The program has more forms where you would input the monthly expenses including vacancies and maintenance to come up with the cash flow.
The rental property Valuator and the flip Valuator can both be seen on the same page to help you determine whether it is better to rent the house or flip it. I wish I could see the rental property numbers on their own without the flip Valuator, but that is not a feature yet. If you are using different types of financing on the rental versus the flip, you have to manually change all the financing numbers to see a comparison.
The Rehab Valuator also has many reports that can be created to help find investors or private money. You can attach pictures, enter comparable property information and couple that with the flipping or rental property numbers to create a professional looking report. If you are trying to secure private money or a partner they are going to want a lot of information. Those investors will not want that information scratched onto napkins or lose notebook paper. The more professional the package is the better chance you have getting investors to give you money.
How easy is the program to use?
The program is very simple to use and comes with video instructions if you have any problems. The program also has great customer support if you need personalized assistance to get it up and running. I was able to get started right away as it is very straight forward. Each number you enter into the program is on a numbered line and each number line has instructions on what the figure is and what it means to you. The tricky part comes in with some of the financing options if you are not using hard money with a flip or you are not refinancing a rental property. You can still work around those items and there may be a better way to enter information that I have not found yet.
I think the Rehab Valuator is a great tool for flippers, wholesalers or buy and hold investors. The Rehab Valuator lite version is available for free here. The lite version does not come with every feature I described here, but it gives you a great idea of the functionality of the program. To get the full version it is a one time fee of $97, which is a bargain for all the features it has. If you have questions about the program and its features leave a comment on Daniil’s page; he is very quick to respond.