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Updated almost 3 years ago, 02/08/2022
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I see now that the 70% rule is NOT a one size fits all model. My thing is what variables does everyone use to satisfy the seller into selling and enticing the buyer into buying at the same time making some sort of profit?
I read from one user that she does not add the wholesale fee in her calculations. She also stated that the 70% depends on if the buyer wants to fix & flip, sometimes the buyer could be someone who just wants to rent it thus not looking to put too much on the rehab. She also said to not over think it and just try to compare the houses that sold near the property and that should give you and idea on the price to sell.
Funny thing is that I AM over thinking this cause I don't want to low ball the seller but then again I do want buyers to be interested as well and make some money from it. I know closing costs are different in each state, one user suggested using free American title to calculate the closing costs and fees. So do I take the ARV - repair costs - closing fees - fee? Am I doing it wrong? Does someone use something different?
Thanks