GRM for BP Rental Property Calculator
When calculating the GRM, why does the BP Rental Property Calculator use the Purchase Price as opposed to the ARV? As it currently stands, it uses the after-rehab rent values for the GSI in the denominator, but uses the before-rehab value of the home (purchase price) in the numerator? If you are going to use the after-rehab rent values, should you not also use the ARV for the value of the home? Not too big of a deal, but just curious.