How grades are assigned

The grade thresholds

HOT means the deal is actionable today. WARM means it's worth pursuing but the math is tighter. COLD means walk away or wait for a price drop.

• 🔥 HOT — score 75+. Under MAO ceiling, motivated seller signals, condition matches strategy
• 🌡️ WARM — score 50-74. Close to MAO, some motivation indicators, may take negotiation
• ❄️ COLD — score below 50. Above MAO ceiling, no motivation signals, hard pass on cash

What pushes the score up

Specific signals add points to the score. Multiple signals stack — a deal with three motivation signals will score much higher than one with one signal.

• Listing price under MAO ceiling (gap percent under 10%)
• Days on market over 60 days
• Recent price drops on the listing
• Distress language in the description (motivated, must sell, divorce, estate)
• Condition matches the offered strategy

What pushes the score down

Other signals subtract points. These don't necessarily kill the deal but tell you what to negotiate around.

• Listing price above MAO ceiling (gap percent over 20%)
• On market less than 14 days (seller has options)
• HOA fees that compress margins
• Condition mismatch (full gut listed as turnkey)
• Recent listing date with no price activity

Two grades, not one

Every deal gets two grades — one for cash, one for creative. A free-and-clear property with a listing price 30% above cash MAO is COLD for cash but might be HOT for seller finance. Read both before deciding to pass.

Every Rinse ends with a HOT, WARM, or COLD grade. The grade is calculated from a 100-point score that combines gap percent, days on market, condition, and motivation signals. Here's exactly what pushes a deal up or down.