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On a $200,000 repaired value and $1,900 of rent, a refinance at 75% of value and 1.25 coverage returns your cash on a bid up to $114,700. At a $150,000 bid, $35,619 stays in the house. The loan is $144,876, sized by the rent. Put your own deal in below.
Highest bid that returns your cash
$114,700
Bid up to $114,700 and the refinance pays back the bid, the repairs and the costs. Above that, some of your cash stays in the house.
The new loan
$144,876 at 7% for 30 years is $964 a month. Coverage is 1.25. The rent sizes the loan. The repaired value would have allowed more. After the payment, the rent leaves $241 a month.
At a bid of $150,000
You bring $181,500. The refinance wires back $141,978, and the house pays $3,903 while you wait. $35,619 of your cash stays in the house. That is 80.4% of it back.
The lender takes the smaller of the two. The bid does not change either one: it changes how much of your cash the smaller loan can pay back.
The repaired value, the rent and the rate are the three that move the loan. The bid that still returns your cash, with each one worse:
Bidding $96,400 still returns the cash in the worst of these.
Selling the repaired house is the foreclosure auction max bid calculator. Keeping the cash in and living on the rent is the foreclosure auction cash flow calculator.
One sum is the cash you take to the auction. The other is what the refinance wires back.
Cash in = bid + buying costs + repairs + liens
Loan = the smaller of
repaired value × loan-to-value
and the loan the rent covers at your DSCR
Proceeds = loan − refinance costs
Cash left = cash in
+ interest on it while you wait
− rent collected while you wait
− proceedsCash left at zero is the whole point of the strategy. Your money is out, the tenant pays the new loan, and the same dollars can buy the next house. Anything above zero is still yours, stuck in this one.
Worked through on the deal the calculator opens with: a $150,000 bid, $30,000 of repairs and 1% buying costs is $181,500 of cash in. The rent supports a loan of $144,876 at 1.25 coverage. 75% of the $200,000 repaired value would allow $150,000, so the rent is the limit. After 2% of refinance costs the lender wires $141,978. Over the 6 months of waiting, with a tenant from month 2, the house pays $3,903. $35,619 of the cash stays in. The bid that brings the rest of it home is $114,700.
Most BRRRR write-ups start with a loan at the purchase. A trustee sale does not offer one. The bid is due at the hammer, or by the next business day, in cash or a cashier’s check. The loan comes later, and only if a lender will make it.
How to buy at a trustee sale covers the auction itself: the title checks, the bidding and the form of payment.
Buy, rehab, rent, refinance, repeat. The calculator adds up the cash you bring to the purchase, sizes the new loan at the smaller of a share of the repaired value and what the rent can cover, and subtracts. On the example, a $150,000 bid leaves $35,619 of cash in the house. The bid that gets all of it back is $114,700.
The whole bid, plus buying costs, repairs and any lien the sale leaves in place, because the auction is paid in cash or a cashier's check. At the example's $150,000 bid that is $181,500, before the refinance. There is no down payment to model: there is no loan at the sale.
Debt-service coverage is a year of net operating income divided by a year of loan payments. Lenders commonly want 1.25, which means the income is 25% above the payment, and the loan is cut until the ratio clears. Here the rent supports $144,876 at 1.25 coverage, and that is the loan, because it is smaller than 75% of the repaired value.
Many cash-out loans will not close until several months after the purchase, often six. During the wait you carry the house, and you may still be removing an occupant. The example waits 6 months, with the first tenant at month 2, and the house pays $3,903 over that stretch. A lender that requires a signed lease will not close before the tenant is in.
The cash you brought, plus any interest on it while you waited, minus the refinance proceeds and minus the rent collected during the wait. Zero means the strategy did what it claims: your cash is free for the next house, and the tenant pays the new loan. A positive number is the cash still stuck, and the return on the deal is whatever that stuck cash earns.
Whichever allows less. A high value with thin rent is limited by coverage. A high rent with a modest value is limited by the loan-to-value cap. In the example the rent wins, at $144,876. If the rent were 10% lower, the bid that still returns your cash would fall to $96,400.
The refinance works on a bid. It needs a property.
A refinance returns your cash only when the bid is low enough. An account lists upcoming trustee sales with the unpaid balance from each notice, the debt behind the lender's bid, beside the address and sale date, and emails you when a new sale is noticed.
Every plan starts with a 7-day free trial. The tools stay free.
Investors and flippers deciding what to bid
Foreclosure auction max bid calculator
Enter the after-repair value and your costs; get the most you can bid at a trustee sale and still make your profit, with the 70% rule beside it and the state's deposit and finality rules applied.
Investors who will rent the house they win
Foreclosure auction cash flow calculator
Enter the rent and your costs; get the most you can bid at a trustee sale and still hit your cap rate and cash-on-cash return, with the months before a tenant counted in the first year.
Homeowners, their lawyers and housing counselors
Trustee sale deadline calculator
Enter a state and a sale date; get every statutory deadline as a calendar date — reinstatement, notice, publication, finality — each with the sentence of law it comes from.
Anyone holding a notice — owners, heirs, investors
Notice of trustee's sale decoder
Paste a notice of trustee's sale and get it back in plain English: when and where the auction is, who is running it, what is owed, and the deadlines that follow.
Bidders, especially at their first trustee sale
Trustee sale cashier's check calculator
Enter your maximum bid; get the set of cashier's checks that can pay any winning bid up to it, and the payment terms the state's code sets.
Highest bid that returns your cash
$114,700
Bid up to $114,700 and the refinance pays back the bid, the repairs and the costs. Above that, some of your cash stays in the house.
The new loan
$144,876 at 7% for 30 years is $964 a month. Coverage is 1.25. The rent sizes the loan. The repaired value would have allowed more. After the payment, the rent leaves $241 a month.
At a bid of $150,000
You bring $181,500. The refinance wires back $141,978, and the house pays $3,903 while you wait. $35,619 of your cash stays in the house. That is 80.4% of it back.
The lender takes the smaller of the two. The bid does not change either one: it changes how much of your cash the smaller loan can pay back.
The repaired value, the rent and the rate are the three that move the loan. The bid that still returns your cash, with each one worse:
Bidding $96,400 still returns the cash in the worst of these.
Selling the repaired house is the foreclosure auction max bid calculator. Keeping the cash in and living on the rent is the foreclosure auction cash flow calculator.