What the calculation measures
ARV and rehab cost are usually the largest uncertain inputs. Use conservative comparable sales and a detailed scope rather than optimistic assumptions.
How to interpret the result
Maximum purchase price works backward from the selected target profit after all modeled costs.
Run scenarios instead of one answer
Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.
Limits and assumptions
Unexpected repairs, financing terms, taxes, market time and sale concessions can materially change actual results.