ROI for Rehab

[Jodi M.]

We are looking into bidding on our 3rd rehab. We have done 2 in the last 12 months with both having a very high ROI for this area. Both sold in the $65,000-$70,000 range.I realize we were very lucky and it won't always happen like that. Both were forclosures and took 5 months to complete. (We do the work ourselves outside of our full time jobs)

How much do you guys look to make on a house in the $100,000-$120,000 range? We are looking at a house in a very desireable area. The asking price is higher than we worked with before and will sell for more The ROI is only about 1/2 of the others but the amount of time/work will also be much less and should be able to go back on the market in a month or 2.

What do you think, try it or not? Thanks

[Jim M.]

That's a little tight IMO. Your first two deals sound great including the 50% one which based on percentage is a home run. If you run into issues 10k can get eaten up pretty quickly and put you in the negative. What are you planning on doing to the home?