Estimating Offer pricing question

[Jacquelyn Place]

When coming up with an offer price how would you calculate in the estimated value vs estimated loan balance vs estimated equity? Obviously you compare with comps. I’m just wondering how the different estimated values play into the equation. 

[David Ramirez]

If you are flipping ARV and Rehab are the values that you would need to come up with an offer. If you are buying a property that doesn't need work and you are going to keep it as a rental you should run AS-IS comps and stick to the 1-2% rule.