Is 75-80% ARV still a good % in Phoenix? at this current market?

[Domingo Cano]

Hello Family, 

I'm currently looking at a few deals in in phoenix Arizona and most of my calculations ARV and repair s are some good numbers to make an offer at 75-80% after repair value. I was just wondering if local investors can help me out or see what % they are using? so hard to get something under contract at 70% ARV

[Chad McMahan]

Quote from @Domingo Cano:

Hello Family, 

I'm currently looking at a few deals in in phoenix Arizona and most of my calculations ARV and repair s are some good numbers to make an offer at 75-80% after repair value. I was just wondering if local investors can help me out or see what % they are using? so hard to get something under contract at 70% ARV

Hi Domingo.
Offering 75%-80% of ARV only makes sense if all you care about is equity. Is that the case? Even so, remodel cost is an enormous factor.

You may want to reconsider your requirements, depending upon what the remodel cost is, how long it will take, how desirable the property is, what it will cash flow, etc.

Many BP investors are cash flow or cash on cash oriented, and purchase based on what annual return they will receive- and a sliding scale, depending on the scope of remodel.

Some investors simply look at cost per door, and purchase multi family.