Understanding Your Quick Analysis

The Two Speed Limits

Every deal has two ceilings. Kaison calculates both and shows you which one hits first.

LTV Ceiling

LTV stands for Loan-to-Value. When you refinance after renovating, your lender will loan you a percentage of the property's appraised value. If your lender does 80% LTV and the property appraises at $160,000 after renovation:

$160,000 × 80% = $128,000

That's the most your lender will give you. If your total cost exceeds $128,000, the difference stays in the deal as your own money. If your total cost is under $128,000, you get cash back at closing.

DSCR Ceiling

DSCR stands for Debt Service Coverage Ratio. Your lender requires the rental income to cover the mortgage payment by a certain margin — typically 1.10 to 1.25×. If your lender requires 1.15×, that means for every $1 of mortgage payment, the property needs to generate $1.15 in net operating income.

This creates a second ceiling: the maximum loan that the rent can support.

If the property rents for $1,300/mo and your lender requires 1.15 DSCR:

Even though the property value supports a $128,000 loan, the rent can only cover a $114,500 loan at your DSCR requirement.

Which One Wins?

The lower ceiling is your "binding constraint" — the one that actually limits your deal.

When DSCR is binding (DSCR < LTV): The rent is the bottleneck. Verify if the rent estimate is accurate — can the property actually rent for more?

When LTV is binding (LTV < DSCR): The property value is the bottleneck. This is actually the better position — it means strong cashflow.

Kaison shows you the "Min Rent for DSCR" — the exact rent where DSCR stops being binding and LTV takes over. That's the specific number to verify on your walk-through.

Max Purchase Price

This is the headline number. It answers: "What's the most I can pay and still hit my targets?"

Kaison works backward from your binding constraint:

Change any input and the max purchase recalculates instantly: higher rehab lowers max purchase, higher rent raises it, lower ARV lowers it.

Strategy Comparison

Kaison runs both BRRRR and Flip automatically and recommends the stronger strategy.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

You keep the property. The goal is positive monthly cashflow, money back out at refinance, and long-term equity growth.

• Cashflow: Monthly income after all expenses. $224/mo means the property pays you every month.
• DSCR: How comfortably the rent covers the payment. 1.24 means a 24% cushion above breakeven.
• Cash out: Money you receive at refinance closing.
• Money left in: Your capital still trapped in the deal after refi. $0 = infinite return.

Flip

You sell the property. The goal is maximum profit in minimum time.

• Profit: Sale price minus all costs.
• ROI: Profit divided by total investment. 19.5% means 19.5 cents earned per dollar invested.
• Hold time: How long your capital is tied up.

Sometimes BRRRR fails DSCR but Flip works perfectly. Kaison flags this so you see both options clearly.

The Offer Range

The offer range table shows three price points — your negotiation playbook.

Each row shows the financial picture at that price point so you know exactly what you're trading for every dollar.

ARV: Kaison's Estimate vs. Yours

Kaison calculates the After Repair Value from comparable sales — recently sold properties with similar size, bed count, and location. Confidence levels:

• HIGH: 5+ sold comps, tight price range, recent sales
• MEDIUM: 3-4 comps, or wider range, or older sales
• LOW: 1-2 comps, or active listings only

You can override the ARV. When you do, Kaison shows both numbers. If the gap exceeds 10%, investigate — one of you is wrong and figuring out which one matters.

Click "View Comps" to see the actual properties supporting Kaison's ARV. If a comp doesn't match (wrong neighborhood, different condition tier), mentally exclude it and adjust.

What to Verify on the Walk-Through

1. Rent: Can this property rent for the min DSCR number? Talk to a property manager. If yes, the deal works.
2. Rehab scope: Is your estimate realistic? Every $5K in rehab changes your max purchase by $5K in the opposite direction.
3. Comps: Do the comparable sales actually match? Same neighborhood, same condition tier after renovation?
4. ARV: Will an appraiser agree? If you're tight on margins, a low appraisal kills the refi.

Glossary