All Forum Posts by: Ka Vang

70% of what the home will be worth when it is fixed is a good metric. Also, making 10% of whatever the home sells for profit wise is another solid metric. That can help sometimes in the California price point. 

@Ka Vang everyone investor is different, but the typical metric is 70% of ARV and then subtract repairs from that price. I think in better partsof the I.E. they may go up to 75% maybe even 80%.

That's hard to answer the way you wrote it. Not every cash buyer is a flipper; some will do long term holds as landlords or STR/Airbnb. For the flippers, I think the very minimum they want to make is a 25k profit, if not closer to 50k per house. Remember that once they buy the house, they have carry costs while they own it (prop taxes, insurance, utilities, etc) and then they have to pay 4-to-6% approx commission and closing costs again for the flip. Where you are at, in the Inland Empire (i.e. Fontana, Moreno Valley, et al), a very bascic metric that I've heard flippers use, is 100k margin/delta, meaning if the ARV is 400k, then they want to buy it for the max at 300k, if not less. That would be for a light-to-medium fixer.