A value-add analysis shows how much a rehab lifts a property value and rent, and how much capital you pull back out on refinance. Enter purchase price, rehab budget, projected ARV, and stabilized rent to see forced-appreciation gain, cash left in the deal, and the new cap rate.
Buy at $140,000, spend $45,000 on rehab, and stabilize the property at a $250,000 ARV with $2,200 monthly rent. At 75% refinance LTV and $4,000 refi costs, the model leaves about $1,500 in the deal and a 6.3% stabilized cap rate.
Current basis$185,000
Stabilized ARV$250,000
Forced-appreciation gain: $65,000 before transaction friction.
What this tool is good for
Check whether a rehab creates value beyond its cost.
See how much capital is still left after a refinance.
Compare the stabilized cap rate against your rental target.
Pair it with BRRRR, rental-property, and rehab-cost calculators before you offer.
Search live inventory with no DistressedDealRadar account or paywall. Open a promising listing, then run the address through this free calculator before you bid.
ZIP results are mixed inventory: pre-foreclosure, auction, and bank-owned REO listings.
All-in basis
$185,000
Forced-appreciation gain
$65,000
Refinance loan amount
$187,500
Cash out after refi costs
$183,500
Cash left in deal
$1,500
Annual NOI
$15,840
Stabilized cap rate
6.3%
Equity after refinance
$62,500
FAQ
What does a value-add property analyzer show?
It shows whether a rehab is likely to create value beyond its cost. DistressedDealRadar calculates all-in basis, forced-appreciation gain, refinance proceeds, cash left in the deal, annual NOI, and stabilized cap rate.
How do I estimate the stabilized rent?
Use current rents from comparable finished rentals in the same area, then subtract vacancy and operating expenses. Do not use best-case rent to justify a higher purchase price.
Is value-add analysis the same as BRRRR analysis?
They overlap, but they are not the same. Value-add analysis focuses on whether the rehab creates forced appreciation and stronger rent. BRRRR analysis adds the full buy, rehab, rent, refinance, repeat cycle and debt-service math.