Formula for High End Flips

[Travis Steinemann]

Hello BP! 

I don't target high end properties, but just got a lead from my website for a property with a value of about $700k. Generally, I buy $70-150k houses, so this is a bit of uncharted territory for me. I was wondering if anyone flips these, and if they do, is the formula the same as for lower end properties (70% of ARV minus repairs)? I would basically just wholetail it since the property looks great. Complete with a tiki bar, pool, game room, and everything else you could need.

It also is in a small town north of Baton Rouge, Louisiana, which is part of the Baton Rouge metro area but is outside of my normal footprint. I hate to throw a motivated seller lead away, so any advice would be appreciated! 

[Will Barnard]

Perspective is everything! As Jeff stated, $700k is below the median average here in our SO Cal market, not high end. The basic numbers don't change between $250k home and $700k home.

Rural areas or areas without a whole lot of sales/comps make for pricing more difficult and make for a smaller buyer's pool (which increases risk on a flip).

If the property does not need any repairs, where is the value/spread coming from? Unless you are ripping off the seller, why wouldn't they simply list with a realtor and call it a day?