What’s your Maximum Allowable Offer for a BRRRR with cosmetic rehab in this market?

[Mike Schorah]

50 cents on the dollar? 60 cents on the dollar? 70 cents on the dollar?

And are you in a low-demand, low-appreciation market or a high-demand, high-appreciation market?

[Nicholas L.]

I don't use formulas, I put together a very specific offer based on the specific conditions and expenses for the property

I'm in a flat market

[Evan Polaski]

@Mike Schorah, I am not following the question.  What dollar are you comparing to?  

50 cents on the dollar of asking price? 50 cents on the dollar of ARV?

And what is cosmetic rehab?  I get you are likely not referring to foundation or mechanical issues, but are roof, gutters, windows, siding cosmetic?  What about exterior concrete that is crumbling?  To me that is both structural and cosmetic.

The point being, I don't think you will get an answer here, let alone one that will be of any value to you.  

For me, I want to make 20% on my money, and at least $50k for any flip.  That is about the only formula I use.  Everything else is itemized out.

[Andrew Postell]

@Mike Schorah yeah, that's not how you should approach an offer. I mean, you can do what you want...but most of us have only a limited amount of money. So we make our offer based on what the Hard Money Lender will provide (usually 75% of the ARV). So, if I only have 5% available to me then my offer is 80% MINUS the construction costs. To elaborate, if the rehab costs are 50%...then my offer is 30% of the ARV. It's not my fault if that wholesaler is asking too much. I only have so much money. But that's the general way we work it.