The good, the bad, and the ugly
Can Someone educate me more on what a good, bad , and ugly deal look like numbers wise? TIA. I want to get the best understanding and I believe this group is the place to get it!
Hm. Well a good deal is generally 70% of ARV less repairs.
A bad deal is anything anything you lose money on.
An ugly deal is something you lose more than money, you lose your will to keep going; maybe you get sued, maybe you buy a house at an auction with a mortgage on it, maybe you skip getting insurance to save money and the place burns down, etc.
Quote from @Nick C.:
Hm. Well a good deal is generally 70% of ARV less repairs.
A bad deal is anything anything you lose money on.
An ugly deal is something you lose more than money, you lose your will to keep going; maybe you get sued, maybe you buy a house at an auction with a mortgage on it, maybe you skip getting insurance to save money and the place burns down, etc.
great answer.!
Quote from @David Mesteth:
Can Someone educate me more on what a good, bad , and ugly deal look like numbers wise? TIA. I want to get the best understanding and I believe this group is the place to get it!
Are you flipping? Long-term hold? Short-term rental? There are different performance numbers of each. For a long-term rental, I'm generally looking for something with positive cashflow and a 12% return or better.
Here's a guide that describes what good cash flow looks like and how to analyze a property.
https://www.biggerpockets.com/...
