How to determine is a lead is a good deal or not

[Catherine Morel]

Hello, 

I wanted to ask, how can I determine if a property I am researching is a good deal for a flip? 

I currently live in NYC and I am looking for properties in PA, CT, and NJ and I see good prices but I'm not really sure if it'll be a good investment. Any tips ?

btw, I am looking at these properties on Realtor.com and Zillow.com

:)

[Trevor Lybbert]

Congrats on starting your journey!

The old rule of thumb is: After Repair Value X 70% - Repairs=Max purchase price. There are tons of other variables such as level of rehab, size of the property, how competitive the local market is for flips, level of profit required, etc. It is really just good for back of the napkin kind of math.

You'll want to look at nice, fixed up comparable properties for your ARV. Then work back from there. There's a lot more to it, but that's a quick and dirty answer! Whether or not it is a good deal FOR YOU (specific strategy for your markets, financial situation, level of skill and experience, etc.) , and not just a 'good deal', is a whole different story!