Rule of Thumb

[Christopher Manganello]

I'm in Denver Colorado, doing some renovations on distressed properties and was wondering if there was a guideline to how much an investor should be paying per square foot, kind of a rule of thumb or ball-park type number?

Thank You

[Micki M.]

@Christopher Manganello You can use $/sf as guide to market value but it won't tell you what you need to pay for the property in order for your cash flow or profit margin to work. If you don't have MLS access, pull up a list of nearby sold properties on redfin.com and look at the grid view, it will show you average $/sf along with individual $/sf on each property. Once you get familiar with your target neighborhoods you'll be able to look at the figure for a ballpark estimate of how the property is priced. Remember you'll generally pay higher cost for small properties, and it's no indication of the condition or value of the property overall.