Hey Carlos, welcome to BP.
You might want to consider J Scott's "flipping formula" for the Maximum Purchase Price (the most you should buy a property for) which is as follows:
MPP = Sales price - Fixed Costs - Desired Profits - Rehab Costs, where
Sales Price equals the conservative estimate of what I can sell the property for (not necessarily the price I’ll list it for!).
Fixed Costs equal all the costs, fees, and commissions that I can expect to pay during the project.
Desired Profit is the minimum amount of money I want to make off the project when it’s complete.
Rehab Costs are the material and labor costs required to rehab the property into resale condition.
"As an example, let’s say that I have a property I’m considering purchasing. I believe I can easily resell it in rehabbed condition for $100,000. Additionally, I know my fixed costs to be about $17,000 , my desired minimum profit is $15,000, and I’ve estimated the rehab costs to be about $18,000.
In this case, my maximum purchase price is:
MPP = $100,000 – $17,000 – $15,000 – $18,000
MPP = $50,000
So, if I can purchase this property for $50K or less, I’ll jump on the deal."
