Rehab
Repairs and updates to a property — cosmetic (paint, flooring, fixtures), systems (HVAC, electrical, plumbing), or structural.
Property fundamentals
Run the numbers with the Rehab Cost Estimator.
Why Rehab matters
BRRRR investors deliberately buy properties that need rehab so the post-renovation appraisal supports pulling most of their cash back out. Underestimating rehab is the single most common way a BRRRR deal fails.
How to check Rehab before you rely on it
Get a written scope and bid from a contractor who has walked the property, and include permits, materials, disposal, and a contingency for what the walls hide. Confirm the timeline in weeks, because every month of rehab is a month of carrying costs without rent. Then compare the bid to the value it creates using closed comparable sales; a renovation that costs more than the value it adds is an expense, not an investment.
Related terms
- BRRRR
- Buy, Rehab, Rent, Refinance, Repeat. A strategy that seeks to reuse capital through new financing af…
- ARV (After-Repair Value)
- What the property would sell for once rehab is complete. The most important — and most-mis-estimated…
- CapEx (Capital Expenditures)
- Reserves for large infrequent repairs — roof, HVAC, water heater. Typically 5–10% of rent set aside …
- Offer Ceiling
- The highest purchase price that still meets your targets under the assumptions shown.
Where Rehab shows up in TrueCap
Property fundamentals are the facts you enter or confirm about the building itself — price, units, bedrooms, square footage — and the analyzer keeps them separate from assumptions. They decide which benchmarks apply (a 3-bedroom rent benchmark, for example) and appear at the top of every results view and memo so the reader knows exactly what was analyzed.