Do you reduct the repairs from the purchase price or from your pr

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When you buy a property, and there are 5k worth of repairs and the purchase price will be 100k but the property is really worth 120k it means you have 20k in profit. BUT, if there are 5k worth of repairs does it come from your profit? Which means it would be 15k profit Or It would be reduced from the purchase proce? If youll buy it for 100k and it needs 5k in repairs then you'd buy it for 95k?

HELP ME