If one jurisdiction gives you problems, it can be a disaster.For instance, on one of my moves, the electric co. crew that was supposed to elevate the power lines so we could move under them were 45 minutes late.

Last year, for instance, I was unexpectedly confronted by a loose pit bull who wanted a serious piece of me before I dashed inside and called the doggie police.

If you assume a roof lasts (for instance) 10 years, and costs (again, for instance), $5000 to replace, then you need to budget $40/month for roof replacement.That's why Mike and others just used a fixed percentage. 50%'s a conservative number.

I don't disagree with your statements above Mike but I would add that in the commercial world, the deal can not ALWAYS be judged and determined by current cash flow.For instance, lets say you find a 100 unit apartment complex that is bank owned for the last 6 months or so and only 40 of the 100 units have tenants.

For instance if the median price range of homes for you area is $100k then buy a house that will retail for around 100k when you are finished rehabbing it.In my area you can't go wrong with cheap homes though.

There will always be instances where you may be able to negotiate a lower price.

For this instance let's just use 70%.70% of $75,000 (the ARV) is $52,500$25,000 is the purchase price and $25,000 for repairs equals $50,000.

Plus, there are always instances where you will need to have cash to make a deal work or for additional marketing.

For instance, if the market right is that houses are seling for $225,000 and the prices are dropping at 7% per year, but you'll have the house on the market in 3 months, then you'll want to subtract only about 2-3% from the value -so your ARV would be $184,000 from which you'll subtract expenses.ARV $218kRehab $ 30kBSH $ 27k (15% of ARV)Profit $ 30kMax Offer $131kYour $120k offer would be a good price for the house - I might even start neg. lower.

that in the first instance the property has already been taken by the county, and in the second, a lien has been placed on the property. if this is true, then I could buy the first property outright, and the lien on the second.But I realize now what I need to do is talk to the county, not pester you guys about knowledge I can find out for myself.