See how much capital you recover, what your cash flow looks like after the refi, and whether this deal earns ROCKET, STEADY, or SLOW status.
Capital recovered is 95% or more AND rehab cost is $50,000 or less. You pulled essentially all your cash out. Ready to repeat immediately.
Capital recovered is 80% or more AND rehab cost is $75,000 or less. Solid deal. Minor capital remains tied up but the cycle is efficient.
Recovery below 80% or rehab cost too high. Capital is tied up longer. May still be a good hold, but you will need fresh capital for the next deal.
Purchase price plus all-in rehab cost. Be conservative — scope creep is the #1 deal killer.
Use a conservative ARV from comparable sales, not the optimistic ceiling. Set LTV at what your lender will actually approve.
Monthly operating expenses should include taxes, insurance, PM fee, and maintenance reserve — everything except the mortgage.
ROCKET means you can do it again. SLOW means your next deal needs fresh capital. Know before you commit.
Overstating ARV inflates your projected refi loan and makes recovery look better on paper. Use the median of 3+ closed comps within a half mile, same bed/bath count, sold within 6 months.
Add 15-20% contingency to every rehab budget. Unexpected structural issues, permitting delays, and material cost increases happen on most projects. Budget for reality, not the estimate.
Many conventional lenders require 6-12 months of ownership before a cash-out refi. During that window your capital is tied up. Plan your timeline and cash reserves accordingly.
Pulling every dollar out via a high-LTV refi leaves a large mortgage payment that can push cash flow negative. The goal is both — strong recovery AND positive monthly cash flow.
DoorVault tracks your all-in cost, ARV, refi proceeds, and running cash flow for every property. Knox AI scores each deal's velocity automatically.
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