Does this sound like accurate analysis?

[Patrick Philip]

I bought a house from a wholesaler in September 2017 for $115k. I have it listed for $185k and was told by a realtor that was a good price. It hasn't sold yet, but for the sake of this post, let's just say it will sell for $185k.

It is now roughly 9 months after purchase and I have increased the value of the home from $115k to $185k. This is 60.9%. According to data I've read, home prices in the Orlando-Kissimmee-Sanford metropolitan area have gone up 12% annualized during this period. 

60.9 - 12 = 48.9%.

Does this mean that my rehab improvements improved the value of the home by 48.9%?

[James Masotti]

Originally posted by @Patrick Philip:

I bought a house from a wholesaler in September 2017 for $115k. I have it listed for $185k and was told by a realtor that was a good price. It hasn't sold yet, but for the sake of this post, let's just say it will sell for $185k.

It is now roughly 9 months after purchase and I have increased the value of the home from $115k to $185k. This is 60.9%. According to data I've read, home prices in the Orlando-Kissimmee-Sanford metropolitan area have gone up 12% annualized during this period. 

60.9 - 12 = 48.9%.

Does this mean that my rehab improvements improved the value of the home by 48.9%?

 How much you improved the value of the house should be tied to what you spent on the rehab. So if you spent $30k on than it should be worth at least $30k more...regardless of what the percentage is. On the flip side if it was significantly distressed it's possible that your hypothetical $30k actually added more value than that to the property. looking at it in terms of percentage isn't really the best approach to look at how much value you've added to a property.