Struggling Newbie Needing Help!!!

[Acaiah Howard]

Hello fellow bp members,

Ok, I am a newbie but I spend my every waking day studying, listening to every podcast, reading every forum, in an effort to gain as much knowledge as possible. I'm learning a lot but there are a few things that still give me pause. For example property analysis in wholesaling , I know the formula is ARV x 70% - rehab cost - your fee = max offer.

When I watched YouTube they always seem to put 20k in rehab cost. Is that correct??? Also the ARV, I know you have to get the comps to determine basically what similar houses sold for in that area. Ok this one property I was looking at was listed for 38k it needed a lot of work. Houses in that area were going for around 46k. So I did the formula and I got a little over 2k. Which seems very low of an offer for a property that is listed at 38k. I have never been a home owner so I never closed on a property, so all of this is really foreign to me. Nevertheless I am motivated and determined to learn. Can anyone give me some insight n help me a little.