Good Deal Calculator
This is my first fix and flip, so help is greatly welcomed. I understand the equation for calculating a good deal offering price is (After Repair Value * 70%) - Repair Costs. But can someone help me understand the "range of acceptability"? For example, I've found a 4/3/2 in a great neighborhood. The ARV is 195k and has about 20k in repairs. Using the calculation, I should offer 116.5k. But, what if I don't get 116.5? What if instead the owner says 145? Is 145 still a good deal? Or is 116.5 my threshold? After 20k repairs on 145k, I would think the 30k difference (195-165) would still be a pretty good profit? Can someone clarify, please? Thank you! --New Flipper