I am really curious I am in the surrounding area of Seattle north end. I want to know if the 60 percent or the 70 percent rule really works in my market.
I am assuming you mean 70% of ARV minus construction costs. In North Seattle which is my area, it is extremely tough as sellers are not motivated like normal because it's such a hot market. That being said, the deals at 70% of ARV minus construction costs do exist. I just closed a flip that sold for $850 k and bought for $425 k with $110 k rehab.
What I have noticed is that many experienced flippers are spending more money like over $100 k and doing more extensive rehabs. The hedge funds buy under $500 k and I think that makes it extremely hard to get the deals under $500 k in Northern Seattle. Better luck finding the numbers in Everett, Marysville, and Tacoma kind of areas in the under $500 k price points.
I know some investors use no formula and some use 83% of ARV minus construction costs.
If you find a 70% of ARV minus construction costs, I would like to buy it.
Hey buddy, sorry for the late response, Good point I did not think about that as far has how much investors are buying for I really did not know but totally makes sense though more money for everybody right and bigger spreads? I assume.
Totally will do business with you and let you know what I find.
As of right now still working on figuring ARV and repair cost and putting together a solid marketing system. Now that I am finding out that Zillow not a good resource for determining ARV or maybe I am doing wrong but at least it tells me what things are selling for in my Market right? I feel that is a good starting point as though market value comps are no good I think you were the one that mentioned that to me by the way.
Nicely done Ryland! Pretty impressive numbers.
I do mail marketing in the area and find it very tough to find deals. Seems like there is a large number of investors doing mail marketing in Seattle area these days.
One seller I called recently received mail pieces from 9 different investors. Hard to bargain for a deal when the buy side is so crowded.