Updated almost 4 years ago on . Most recent reply
Questions about this deal I want to get under contract
If I wanted to get a house under contract it was listed at 110k needs 60k or more RC And fully updated would sell for maybe 170k low 200 how much would the profit be for the real estate investor and how much would be a good price to negotiate at?
Most Popular Reply
Hey Jordan! I think its important to first firm up your ARV. $170k to $200k is a huge difference that will be the difference in you making money or losing money. Your exit plan is also important. If you're a looking to flip the property, you'd want to be sure the updates and materials used are comparable to whatever comparable homes you are using for your ARV. If you plan to do a BRRR you'd want to look at comparable rentals as well and make sure the property will cash flow. Once you get the ARV a good rule of thumb is to remain at or below 70% of the ARV for the purchase price and renovation.