@Taylor Nunn I would recommend starting with the end in mind. When you find a property that looks promising, work with a real estate broker to conservatively estimate the after-repair market value (ARV) of the property that's supported by plenty of comps. That should give you a fairly reliable selling price. Then see what expected profits are after estimated deducting purchase, rehab, and selling costs. If you're comfortable with the estimated profits, and you have a reliable expected selling price, then it's probably a good deal. Hopefully that helps a little.
@Taylor Nunn I would recommend starting with the end in mind. When you find a property that looks promising, work with a real estate broker to conservatively estimate the after-repair market value (ARV) of the property that's supported by plenty of comps. That should give you a fairly reliable selling price. Then see what expected profits are after estimated deducting purchase, rehab, and selling costs. If you're comfortable with the estimated profits, and you have a reliable expected selling price, then it's probably a good deal. Hopefully that helps a little.
@Taylor Nunn I would recommend starting with the end in mind. When you find a property that looks promising, work with a real estate broker to conservatively estimate the after-repair market value (ARV) of the property that's supported by plenty of comps. That should give you a fairly reliable selling price. Then see what expected profits are after estimated deducting purchase, rehab, and selling costs. If you're comfortable with the estimated profits, and you have a reliable expected selling price, then it's probably a good deal. Hopefully that helps a little.
Thank you for the reply! Great insight. I guess my real question is, how do you know the house is going to sell in the area I decide to buy in? How do you decide your confidence level in knowing it's going to sell? I don't want to get into a situation where I buy a house and have it sit there because no one wants to buy it. I'm in a town North of Chicago. Not the best, but not the worst. I see a lot of opportunities, but am afraid nobody wants to live here.