General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated almost 9 years ago,
Max offer price for a buy and HOLD income property
Hi BP! This is my first post, and I'm really excited to get some feedback from some more experienced investors here. My question is as follows...when considering the purchase of a fixer-upper property to fix, hold, and rent, what would be a wise max offer price in order for it to be a "deal".
I was thinking of using the basic formula of 70% of the market value (based on comps) minus the estimated repairs. Is that too extreme? Would 85% or 90% of the market value minus repairs work as well considering my intention is to hold and not to flip? Or would that be foolish?
Thanks!
Matt