How to use it
Start with the purchase price and the rehab budget. Then set the loan terms you’ve actually been quoted. If you haven’t been quoted yet, leave the defaults, but treat the answer as a rough sketch, not a plan.
What people forget
- Rehab money usually comes after the work. Most lenders reimburse rehab in draws. That means you pay the contractor first and get paid back after an inspection. Have at least one draw’s worth of cash on hand.
- Interest starts on day one. Every month the house isn’t sold costs you. Add a month or two to your timeline. You’ll probably need it.
- Contingency is not optional. Something behind the walls always shows up. Ten percent is the floor, not the ceiling.
- Selling costs are real. Agent commissions, seller concessions, and closing costs on the sale side come straight out of your spread.
The fine print
This is an educational estimate. It is not a loan offer, a rate quote, or a promise of anything. Your real numbers come from your lender, your title company, your contractor, and your market.