Underwriting

Rehab Tiers (Cosmetic / Moderate / Heavy / Gut)

A classification of the scope and cost of renovation work needed on a property.

Definition

Rehab tiers are an industry shorthand for how much work a property needs. Cosmetic ($0-15K): paint, flooring, fixtures. Moderate ($15-40K): kitchen, baths, some systems. Heavy ($40-75K): full kitchen + baths + systems + roof. Gut ($75K+): everything down to the studs, new electrical/plumbing/HVAC, roof, siding. Every deal on Impact House Deals is tagged with a rehab tier and dollar estimate so buyers can underwrite quickly.

Related terms

ARV (After Repair Value)

The price a property will sell for once all renovations are complete, established from rec…

MAO (Maximum Allowable Offer)

The highest price an investor can pay for a property and still hit their target profit.

Put this to work on a real deal

Browse off-market wholesale properties in Central Maryland and underwrite with our free tools.

Browse Deals ARV Calculator