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Updated about 11 years ago on . Most recent reply

Wesley Merriweather's profile image
Wesley Merriweather's profile image
Wesley Merriweather
  • Real Estate Investor
  • from Sacramento, CA
  • Member since Sep 10, 2013
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Wesley Merriweather's profile image
Wesley Merriweather's profile image
Wesley Merriweather
  • Real Estate Investor
  • from Sacramento, CA
  • Member since Sep 10, 2013
Connect
Wesley Merriweather
  • Real Estate Investor
  • Sacramento, CA
1
Votes |
47
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Rehabbing & House Flipping

ROI and Rehab

Wesley Merriweather
  • Real Estate Investor
  • Sacramento, CA
Posted

Hey Everyone,

I have a question regarding calculating ROI for a Buy and Hold. Do I include the rehab cost in my ROI?

Example

Purchase Price $40k

Rehab cost $ 5k

ARV is $70,000

Rental Rate is $700 per month assumed at (50% rule) $350 Cash Flow. No additional expenses or debt.

What would be my ROI?

Thanks in advance for the input and direction.

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