Determining the Purchase Price

[Michael Price]

Good Evening BiggerPockets Family, 

I have a question, So I have found about 65 houses in my little farm area and I want to purchase some of them. 

How do I determine what I will purchase the house for and/ or even offer the Owner for the House? Meaning can I take the assessed value of the home and multiply it (the assessed value) by .60% and make on offer? or what?

I want to push myself to get 2 houses under contract this week, and make my 1st deal(s)

Thanks for the advice in advance...!!!

[Andrew Postell]

@Michael Price $54,000 would be the most I would offer on a home in this price range. This is essentially 70% of the ARV but if the price point was higher it could absorb a wrong turn in renovations easier. The challenge with homes at this price point is that a door, window, ceiling fan, etc. all have the same prices as a home at twice the price. Stick to 70% and you should be sitting pretty good even if something occurs during the renovation step. Hope this helps!