Newbie in Sugar Land, TX

[Alia Abbasi]

Hey everybody, I'm Alia in Sugar Land, TX. Currently I work full time as a purchaser in the oil & gas industry. I am looking to educate myself and work towards something more rewarding and enjoyable. I am interested in SFRs and/or flipping houses.

I read a BP article on getting started and learned quite a bit. It seems a lot of importance is placed on the 70% ARV rule. My question is, as I'm looking through listings, how do I come up with the ARV and the repair cost?

Thanks y'all! I look forward to learning a lot and making new friends!

[Eric Tait]

An easy rule of thumb (and it is only a rule of thumb not applicable in all cases) in the Houston area is:
Houses 10 years old or less $5-10 per sq ft in price to rehab
10-20 years old $10-15 per sq ft.
20-30 years old $15-20 per sq ft.
30+ years $20 or more
This will give you a rough approximation (very rough, but a good ball park for replacing all of the major systems based on life expectancy and updating paint carpet etc...)
If you are looking to flip you will be on the higher end, if you are buy and hold, on the lower end of the range.