Property fundamentals
Rehab
Repairs and updates to a property — cosmetic (paint, flooring, fixtures), systems (HVAC, electrical, plumbing), or structural.
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.
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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.