Sample Analysis

See what a Recon analysis looks like

Every deal comes with an ARV, an 85% confidence interval, three strategy breakdowns, comps, and AI intel — plus an offer ladder on the deals we'd actually back. Below is a complete real example, including a case we wouldn't — no login required.

BRRRRMid Not a Value-Add Candidate

123 Oak Drive

Huntsville, AL 35801 — Huntsville AL

List Price

$245,000

Est. Market Value (As-Is)

$310,000

Beds / Baths / Sqft

3/2/1,680

Days on Market

42 days

Year Built

1962

Value-Add Verdict

Net spread after rehab, holding & selling costs.

-$15K

Not a Candidate

Needs +$25K and 10% of capital in — this lands at -5.5%.

Confidence 87%

Composite confidence score: 87/100

Confidence — Moderate58/100 (Model Trust)

Likely Value Range(85% interval)

We expect the true value to fall between $260K and $415K. Green dot is our best single estimate; the shaded band is the likely range; red line is the asking price. (85% confidence interval)

List
$260K$310K$415K

The Value-Add Spread read is where the verdict above comes from. Gross spread discounts the raw ARV-to-list gap by ~30% for measured ARV optimism; net spread then subtracts full rehab, holding, and selling costs. “Capital in” below means list price + rehab ($245,000 + $25,200 = $270,200) — the cash actually at risk. This property's net spread doesn't clear our $25K / 10% candidacy floor, so Recon routes it to its rental/BRRRR economics instead of a flip. We'd rather tell you no than inflate a spread.

Value-Add Spread

Not a candidate

Our value estimate assumes average condition — a fixer-upper is worth less than this number — so ARV − list price reads as the spread a renovation could capture (the value-add deal), not a claim the listing is mispriced. Net spread deducts estimated rehab, holding, and selling costs. (Technically: the model's ARV is condition-blind.)

List $245K ARV $310K (raw gap $65K)

Gross Spread

$46K

18.6% of list

after conservatism haircut

Net Spread

-$15K

-5.5% on capital in (list + rehab)

$/sqft vs Zip Median

Discount

Rehab Est.

$25K

+$14K hold · $22K sell

ARV Band

$260K $415K

calibrated on realized flips

ARV Estimate

$310K

basis: standard model estimate

Downside Net

-$45K

net spread at the band's lower ARV

Candidacy checks

  • Net spread clears the floormin ~$25K
  • Return on capital clears the floormin ~10%
  • No permanent discountflood, highway, lot, land
  • Spread explained by conditionnot a turnkey outlier

Why not a candidate: The net spread is below the candidacy minimum (typically $25K)

Spreads shown are the conservative read — we already discount for the model's known optimism.

The Flip strategy card (when shown) is computed on a different basis — a condition-uplift ARV and itemized rehab — so its net profit can differ from the net spread here. When the two disagree, this card is the conservative read.

Three investment strategies analyzed. Green highlight = recommended approach.

Flip

MAO (70%)$194,500
Net Profit$38,200
ROI19.8%
Rehab Est.$22,500
Hold Costs$6,400

Rental (LTR)

Monthly Rent$1,950
Annual Cash Flow$4,320
Cap Rate7.1%
Cash-on-Cash11.4%
GRM10.5

BRRRR

Recommended
Cash Required$62,500
Total Investment$263,000
DSCR1.32
ViableYes
Profit Margin14.5%

Offer Strategy

Shown for illustration. On a live deal our analysis rejects, Recon hides this ladder instead of naming a price — you'd see an explanation here, not numbers.

Aggressive

$165K

Target

$179K

Walk-Away

$195K

Target is 27.0% below asking

Because this property doesn't clear our value-add bar (see verdict above), the ladder is capped at the classic 70%-rule ceiling: $194,500 — 70% of our $310,000 ARV minus $22,500 in full rehab. Walk-Away sits exactly at that ceiling; Target and Aggressive negotiate down from there. 42 days on market and no recent price reductions suggest the seller is testing the market — lead with Aggressive and justify with the 1960s HVAC and the comp at 204 Maple ($302K, 1,640 sqft). The 45.3% gap between Target and our $260,000 lower bound isn't free equity: it combines our own MAO discipline (pricing well under list because this property doesn't clear our value-add bar) and the same rehab-driven gap between list and ARV that the Value-Add verdict above already prices in as rehab, holding, and selling costs.

AI Intelligence

FairCondition Assessment

Photos show original kitchen and bathrooms, refinishable hardwoods under carpet, and a structurally sound exterior. A cosmetic-plus-systems rehab (kitchen, two baths, HVAC, paint, flooring) at ~$18K opens a BRRRR refinance at our $310,000 ARV with 75% LTV.

Red Flags

  • 1960s HVAC may need replacement ($4–6K)
  • Original windows — consider $3K upgrade for rental appeal
  • Roof age unknown; inspection strongly recommended

Negotiation Signals

42 days on market indicates above-average motivationDated HVAC and electrical support a lower offerEstate sale — heirs often prioritize a fast close

Flip Rehab

$22,500

Rental Rehab

$14,200

BRRRR Rehab

$18,000

Top Comparables

AddressDistanceSoldSqft$/SqftDOMSold Date
117 Oak Dr0.1 mi$314,5001,720$183282 mo ago
204 Maple St0.3 mi$302,0001,640$184335 mo ago
88 Birch Ln0.4 mi$319,9001,700$188191 mo ago

Weighted median comp price: $312,100. Recon adjusts for sqft, condition, lot, and recency.

Why This Isn't a Value-Add Candidate

List is priced 6.1% below our model's 85% confidence lower bound of $260,000 — a $155K-wide interval (about 50% of the estimate) around a $310,000 central estimate. It's real, but wide: this property routes to our Budget price segment, a documented weak spot where the model widens its range rather than pretend to precision it doesn't have (see Model Details below). Our pricing model is also condition-blind: on a home that needs work, its estimate reads as an After-Repair Value, not a same-condition comp price — so “below the model” isn't proof of a mispriced listing. Once you apply the ARV-optimism haircut and this property's actual rehab, holding, and selling costs, the net spread comes out to -$15K — under our $25K candidacy floor. See the Value-Add Spread verdict above for the full math.

Signal breakdown

  • Priced 6.1% below our model's lower bound — reads as renovation spread (condition-blind pricing), not proof of mispricing
  • Below-median PPSF: $146 vs $184 submarket median
  • 3/2 ratio matches neighborhood norm (highest resale velocity)
  • 2-car attached garage (+$8K comp adjustment)
  • 42 days on market — seller motivation above market median

Risks

  • 1960s HVAC may need replacement ($4–6K)
  • Original windows — consider $3K upgrade for rental appeal
  • Roof age unknown; inspection strongly recommended

Risk & Quality

Quality22/100
ArchetypeMid-century ranch
ConditionFair
Seller Motivation72/100

Market Regime

Budget Segment

This home is priced in the bottom ~35% of its market, so it's served by a specialist model tuned for cheap homes — where prediction errors are historically larger. This is a documented weaker segment for the model, so we weight the conservative floor more heavily and widen the range here rather than take the raw estimate at face value.

Expert pool

5-model specialist pool

Typical error on similar homes

28.7%

Advanced: model internals

5-expert pool: ExtraTrees, CatBoost-Quantile (P25/P45/P75), CatBoost-Uncertainty, DRF, and XGBoostLSS. Trained on an identity transform to avoid log-scale distortion at low price points.

Lead expert model: catboost · weight 34%

Regime is assigned by a Gaussian Mixture Model on predicted price-per-square-foot. Per-regime conformal calibration means the confidence interval already accounts for this property's segment.

Model Metadata

ScoredJust now (sample)
MarketHuntsville AL
Price tierMid
This is a sample deal

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