Hello, this is a question directed to Texas investors. What purchase formulas are y’all using in 2021?
I know the 70% rule is a good general starting point for fix and flip investors in terms of purchase formulas.
What purchase formula do you use?
Any advice would be greatly appreciated!
70% minus repairs should keep you out of trouble most of the time. That doesn't mean it isn't tough to find properties in this price range. There are also plenty of people willing to cut corners or ignore risk and pay more. There are also rehabbers who do all the work themselves and that's cheaper in a way than hiring it out, so they can pay more than that.
Read the book FLIP by Rick Vallani. Excellent books that includes numbers.