This is one of those areas where there isn’t a universal rule, but there is a framework that keeps you profitable without creating unnecessary turnover.A few principles I use:1.

You’re thinking about this the right way, and your instinct to not pay near stabilized value is exactly right.For a fully vacant, 1950s vintage, gut-renovation multifamily, the pricing should be driven by risk, time, capital exposure, and execution, not just the end value.A few framework points that may help:1.

Settlement is faster.

Even prior to the recent settlement.

@Ricardo Vergara, A true passive investor builds a simple decision framework and sticks to it.

That might allow you to negotiate a settlement.

The 1st lien balance could easily be over $450k before it gets to settlement at auction.

A January hold remains the base case, with any next move pushed later into 2026.Addison, Allen, Anna, Azle, Batch Springs, Bedford, Benbrook, Burleson, Cedar Hill, Celina, Cleburne, Colleyville, Coppell, Corinth, Crowley, DeSoto, Duncanville, Ennis, Euless, Farmers Branch, Fate, Flower Mound, Forest Hill, Forney, Glenn Heights, Grapevine, Greenville, Haltom City, Highland Village, Hurst, Keller, Lancaster, Little Elm, Mansfield, Midlothian, Mineral Wells, Murphy, North Richland Hills, Prosper, Red Oak, Rockwall, Rowlett, Royse City, Sachse, Saginaw, Seagoville, Southlake, Terrell, The Colony, Trophy Club, University Park, Watauga, Waxahachie, Weatherford, White Settlement, Wylie, Dallas, Fort Worth, Plano, Irving, Garland, Grand Prairie, McKinney, Frisco, Mesquite, Carrollton, Denton, Richardson, Lewisville, or Arlington

The most important factors to retain are:- Making your payment on time- Knowing/computing your entrance costs, holding costs and the monthly payment amount before submitting the offer- Understanding the draw system so transitions are efficient- Order of operations/project management- Loan points (some are front-end and some are back-end)- And last but not least, completing the project on time and crossing the finish line (aka settlement), paying the loan off in full.

The sweet spot is in the middle.Here’s the framework I use when coaching new investors:1.