What's your minimum profit margin?

[Cecilia Kim]

Interested in hearing from investors in LA  what your expected profit margin is?

I realize it's difficult to follow the 70% rule and I've heard some investors say they'll go for a deal that has at least a $30K profit.

But $30K from a $1M deal does not seem like a good deal to me, right??

So, what rule of thumb do you follow?

[Braden Smith]

I base my deals on a target ROI. My target ROI is 17-18%. If it is something I can get in and out of quickly, I may go as low as 15%. If it is a project that will require a large amount of capital and time, I want 20% or better.

The 70% rule exists for a reason, and it works. Buying at 70% of ARV minus repairs accounts for all holding costs also, and the cost of using a loan. Stick to your numbers when looking at deals and you won't end up in a bad situation, especially if the market shifts.