Real Estate Deal Analyzer
Grade any deal in seconds. Know your profit, risk, and max offer before you sign anything.
Free to start. No spreadsheets.
Visual Walkthrough
Every deal distills to one equation — every dollar below ARV that you don't account for becomes phantom profit:
Deal Grade Reference — What Each Grade Means
Grade A
30%+
Below 70% threshold
Grade B
15–29%
Solid deal
Grade C
5–14%
Marginal — negotiate
Grade D/F
< 5%
Too thin — walk away
Analysis Sequence
Deal Analysis Formula — How the Numbers Work
Every profitable real estate deal follows the same mathematical structure. Understanding each component prevents "phantom profit" — deals that look profitable but aren't once all costs are counted.
Real-World Example: Phoenix, AZ — 3/2 SFR
A distressed 3/2 in a Scottsdale suburb is listed at $179,000. Three nearby renovated comps sold at $268k, $271k, and $265k — averaging an ARV of $268,000.
Cost Stack
Purchase: $179,000
Rehab: $38,000
Buying costs (3%): $5,370
Holding 5 months: $10,500
Selling costs (7%): $18,760
Total: $251,630
Result
$16,370 profit
ROI: 6.5%
Deal Grade: C
Verdict: Marginal. Negotiate $10k lower to reach Grade B territory.
Pro Tip: Run the deal at the asking price first, then model what the numbers look like if you negotiate to your MAO. If you can get the deal to a B grade at your offer price, you have a deal worth pursuing.
How Deal Analysis Works
What the Deal Analyzer Does
Consolidates ARV, purchase price, rehab cost, holding costs, and exit transaction fees into one unified underwriting report card. Outputs net profit, ROI percentage, and an automated deal grade (A through F) based on your acquisition discount relative to the 70% rule — giving you a clear go/no-go signal before you negotiate.
Why Investors Analyze Every Deal
Emotional decisions kill investing careers. The deal analyzer creates a mathematical firewall between excitement and execution. Flippers who skip formal underwriting average 40% lower profits than those who run the numbers on every lead — even the ones that 'feel right.'
The Underwriting Sequence
Establish Your ARV
Pull 3 closed sales of similar renovated properties within 0.5 miles, sold within 90 days. Average the price-per-sqft and multiply by your target property's size.
Build Your Cost Stack
Add purchase price + rehab + buying costs (2-3%) + holding costs (by month) + selling costs (6-8% of ARV). Every dollar counts.
Read the Deal Grade
Net Profit = ARV minus your full cost stack. ROI = Net Profit ÷ Total Capital. Deal Grade reflects how far below the 70% rule you're buying.
Most investors lose money here — avoid these mistakes:
- Treating ARV as the seller's asking price for renovated listings — only use closed, sold comparable sales.
- Forgetting buyer concessions at closing: sellers often cover 1-3% of purchase price in competitive deals, which reduces your net.
- Modeling 0 months of holding time — even a fast flip takes 3-4 months minimum; budget for 6.
Example Scenario
InvestorVI AI Core Output
Real-World Application
How experienced investors use this tool:
- ✓Run the analyzer BEFORE touring a property — filter bad deals from the address, not the walkthrough.
- ✓Always model two scenarios: optimistic (4-month hold) and conservative (8-month hold). If the conservative case is still profitable, the deal has real margin.
- ✓Use at least 3 closed comps from within 90 days and 0.5 miles to set your ARV — never use Zillow or Redfin estimates.
- ✓Add 10-15% contingency to every rehab estimate automatically. Hidden surprises are not optional.
- ✓Cross-check the deal grade with the 70% Rule Calculator before submitting any formal offer.
Deal Analyzer — Investor Questions Answered
Q.What deal grade should I target before making an offer?
Aim for a B grade or higher. Grade A means you're buying at more than 30% below the 70% rule threshold — exceptional margin. Grade B means 15-30% below — solid deal. Grade C (under 15%) is marginal and only viable if you can negotiate the price down or reduce rehab costs. Never pursue a D or F grade deal unless you have very specific market knowledge.
Q.Should I use all-in cost or just purchase price when calculating ROI?
Always use all-in cost: purchase price + rehab + buying fees + all holding costs + selling fees. Using only the purchase price inflates ROI by 20-40% and leads investors to believe deals are more profitable than they actually are. True ROI = net profit ÷ total capital deployed.
Q.What holding costs should I include in my deal analysis?
Include: hard money or private money interest payments (typically 8-14% annualized), property taxes prorated for your hold period, builder's risk insurance ($100-250/month), utilities kept on during rehab (water, electric), and any HOA fees if applicable. On a 6-month hold, these can total $8,000-$18,000 on a mid-range deal.
Q.How do I analyze a wholesale deal differently than a flip?
For wholesale, deduct your target assignment fee (typically $5,000-$15,000) before calculating the MAO. This ensures your end buyer (the flipper or landlord) still has adequate margin after paying your assignment fee. A wholesaler's MAO must leave room for the buyer's profit — typically using 65% of ARV instead of 70%.
Q.Can this deal analyzer work for rental properties too?
This specific analyzer is optimized for fix-and-flip and wholesale transactions. For buy-and-hold rental analysis, use the Rental Property Calculator instead, which models Cap Rate, Cash-on-Cash Return, NOI, and debt service — the metrics that matter for long-term holds.
Analyze the deal. Understand the market. Make the right decision — with InvestorVI AI.
💡 Need More Insight?
You've got the numbers — now go deeper.
InvestorVI AI works alongside your analysis — helping you go deeper, validate your numbers, and make smarter investment decisions. Ask anything about your deal and get instant guidance.
"This tool gives you the numbers. InvestorVI AI helps you understand what to do with them."
Ask InvestorVI AI →InvestorVI AI can:
- Break down your deal in plain English
- Estimate risks and hidden costs
- Suggest offer strategies
- Answer real-world investing questions
Stop guessing your numbers.
Get your deal grade, max offer, and strategy — instantly.
Free to start. No spreadsheets.
No spreadsheets. No guesswork. Just clear investment decisions.
You can calculate this manually, or use our deal analyzer.