{"id":2171,"date":"2026-09-29T23:03:22","date_gmt":"2026-09-30T03:03:22","guid":{"rendered":"https:\/\/bilterm.com\/?p=2171"},"modified":"2026-09-29T23:03:25","modified_gmt":"2026-09-30T03:03:25","slug":"value-add-calculator","status":"publish","type":"post","link":"https:\/\/bilterm.com\/fr\/value-add-calculator\/","title":{"rendered":"Model a renovation with the value-add calculator"},"content":{"rendered":"
\"Acquisition<\/figure>\n\n\n\n

\u201cShould I renovate this unit?\u201d The Value-Add Scenario Calculator<\/strong> turns that gut feeling into a number: what a rent increase is worth at your target cap rate.<\/p>\n\n\n\n

  1. Go to Tools \u2192 Acquisitions<\/strong> and find the Value-Add Scenario Calculator<\/strong> (\u201cModel the impact of a renovation on building value\u201d).<\/li>
  2. Enter the Renovation Cost ($)<\/strong> \u2014 e.g. 15000.<\/li>
  3. Enter the Monthly Rent Increase ($)<\/strong> the renovation should support \u2014 e.g. 400.<\/li>
  4. Enter your Target Cap Rate (%)<\/strong> \u2014 e.g. 6.<\/li>
  5. Click Calculate<\/strong>. The calculator shows the value the renovation creates at that cap rate, so you can compare it directly against the cost.<\/li><\/ol>\n\n\n\n

    How to read the result<\/h2>\n\n\n\n

    The math is simple: extra annual rent divided by the cap rate equals added value. $400 more per month is $4,800 a year; at a 6% cap rate that\u2019s $80,000 of value created for a $15,000 spend. The calculator does this comparison for you \u2014 if the value created comfortably exceeds the cost, the renovation earns its keep.<\/p>\n\n\n\n

    Tips<\/h2>\n\n\n\n
    • Run the calculator before you call the contractor, not after the work is done. It\u2019s a decision tool, not a justification tool.<\/li>
    • Test pessimistic numbers too: half the rent increase, a higher cap rate. If the project still works, it\u2019s a good project.<\/li>
    • Pair this with the prospect pro-forma: underwrite the building as-is, then model the renovated version as the upside case.<\/li><\/ul>","protected":false},"excerpt":{"rendered":"

      \u201cShould I renovate this unit?\u201d The Value-Add Scenario Calculator turns that gut feeling into a number: what a rent increase is worth at your target cap rate. How to read the result The math is simple: extra annual rent divided by the cap rate equals added value. $400 more per month is $4,800 a year; […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2171","post","type-post","status-publish","format-standard","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/posts\/2171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/comments?post=2171"}],"version-history":[{"count":1,"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/posts\/2171\/revisions"}],"predecessor-version":[{"id":2172,"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/posts\/2171\/revisions\/2172"}],"wp:attachment":[{"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/media?parent=2171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/categories?post=2171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bilterm.com\/fr\/wp-json\/wp\/v2\/tags?post=2171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}