How to Determine potential ARV

[Pete Abilla]

A house went for sale today in a really hot neighborhood. Asking price is $159,000 and the house immediately next door sold for $599,000 but a few other houses in the neighborhood sold for much less but still above $159K.

The house could definitely be rehabbed and improved both inside and the exterior

So, here’s my question:

Should I buy this house at $159K, rehab it, and hope it sells for around $599K?

I know you make money at the purchase, so the price is already high, but with the house next door selling for $599K there might be opportunity still.

Thoughts?