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Updated 7 days ago on . Most recent reply

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40
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32
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Ali Kalaei
  • New to Real Estate
  • Houston
32
Votes |
40
Posts

When does the repair range get too wide to trust the MAO?

Ali Kalaei
  • New to Real Estate
  • Houston
Posted

So I've been thinking about this for a while now: If two deals can both show $60k in rehab, but they’re not the same if the scope of one is really $55k–$65k and the other could be anywhere from $35k–$95k depending on what’s behind the walls.

The second deal might still "work", technically, but the range itself feels like the risk. At what point do you stop trusting the MAO because the repair scope is too uncertain? Is it based on the dollar spread, the type of repairs, or whether the big-ticket items are still unknown?

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