06 Underwriting Tools
Underwriting tools help you evaluate a deal's financial viability without leaving the platform. Enter property-specific numbers, and the calculators process the math for you.
ARV (After-Repair Value)
The ARV calculator estimates what the property is worth after repairs are complete.
Inputs: - Subject property's current estimated value. - Comps-based market value for similar properties in renovated condition. - Repair estimate (from the Repair Estimator or manual entry). - Expected appreciation or market adjustment.
The calculator compares your subject property against the comps and applies the repair value to project the finished ARV.
MAO (Maximum Allowable Offer)
MAO is the maximum price you can pay and still hit your profit target. The calculator works backward from ARV.
Inputs: - ARV (from the ARV calculator or manual entry). - Repair costs. - Desired profit margin or fixed profit amount. - Holding costs (taxes, insurance, utilities during renovation). - Purchase costs and closing costs. - Selling costs (commission, closing, concessions).
The calculator subtracts all costs and profit from ARV to arrive at the maximum allowable offer.
[SCREENSHOT: MAO calculator showing ARV, costs, and resulting maximum offer]
Cash Flow Projections
For rental and buy-and-hold strategies, the cash flow calculator projects monthly income and expenses.
Inputs: - Expected rent (from comps or market data). - Vacancy rate assumption. - Property management fees. - Taxes and insurance. - Maintenance reserve. - HOA fees (if applicable). - Mortgage payment (PITI).
The result shows projected monthly cash flow, annual cash flow, and cash-on-cash return.
ROI Estimates
ROI calculator gives you return metrics for any deal structure.
Inputs: - Total cash invested (down payment, closing costs, repairs). - Projected profit (from sale or cash flow over hold period). - Hold period (years for rental, months for flip).
Outputs: - Cash-on-cash return. - ROI percentage. - Annualized return. - Break-even timeline.
Saving Underwriting to a Property
Click "Save to Property" to attach the underwriting results to the property profile. The saved underwriting appears in the property's analysis section. You can run multiple scenarios and compare them side by side.
Working with Multiple Scenarios
Run different versions of the same underwriting to test your assumptions:
- Optimistic ARV + low repair costs.
- Conservative ARV + high repair costs.
- Different exit strategies (retail vs. rental).
Save each scenario with a custom label so you can compare them later.
Next steps: - Repair Estimator - How AI Comps Work - Reading a Comp Result - ReiSearch Reports
Notes for Neo
- The platform doc mentions "Auto calculators" under underwriting tools in the ideas section. Specific calculator layout and field availability may vary. Confirm which calculators are live.
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