How Much Should You Buy Rehab Property For?
Obviously you want to buy a rehab property for as cheap as possible...
but does anyone know the average percentage below appraisal value that you should buy the rehab property for? What is considered to be acceptable?
Some people say 70% of the ARV or below. Some say 65%.
Some say its purely situational.
Some use a simple formula.
ARV
-Closing Costs(on buy and sell)
-Holding Costs
-Repair Costs
-Marketing Costs or Realtor commission
-Desired Profit
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Bottom Line price