Newbie Headaches

5 Replies

Any advice for Newbie regarding ARV deals.

@Kimberly Kullen , investor rule number one:- never pay ARV, even if it doesn't need Repairs. (Leave those ones for consumers). ALWAYS go for discounts off current value.

Welcome to BP. Your "Pro" status will give you access to some really good tools here. All the best...

Kimberly Kullen

There is nothing wrong with buying a renovated house, in fact with a buy and hold strategy and minimal experience in renovation, this might be a good idea.

I'd suggest doing your analysis and making your decision on what to offer based on that - not on what the seller believes the ARV is. If you know you can make money based on your strategy, then take advantage of the property.

The key is sticking to your guns, if you are competing with retail customers, they'll have a  different mindset - and will likely drive up the price. As long as you are clear with your strategy and the price you'll pay, you're able to extract value regardless of whether it's before or after repairs.

Good luck to you!

@Kimberly Kullen Welcome to BP. Here's a link to a thread on the 70% rule. It might help to give you a general idea of how much to offer on a property.

https://www.biggerpockets.com/forums/67/topics/201605-70-rule

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