How exactly do you know if it's "Worth" it? (Question's)

[Shannon X.]

I'm taking in terms of rehabbing.. how do you generally figure out if the house is worth buying and know that you will make a good profit? if paying in cash how much should you bring down the price, but still beat all the other offers? if the house is foreclosure and most of the work has been done, what could you do to make the value of the house go up and resell it for more?

[Bill Gulley]

Why don't we start by knowing the highest and best use of a property? ! Finding what amenities are expected in a property to bring the highest rents or price. That pretty much means knowing your market. Next is the assessment of the tragted property and its potential to meet those goals and what the cost will be to bring the property into or up to market. If you have that sale price (or value based on rents) deduct the costs of improvements, holding expenses and costs of acquiring the property, throw in you required return and you'll have the value to you for that property.

You need to get to the point where you can drive by a property, know the area well enough that you can value it basically while driving, know the costs of bring it up to market by walking through, do your due diligence and arrive at an offer. Takes practice and experience, it will come with the more properties you look at and deals done. Good luck