Also, you might want to figure what the property is worth, and then subtract the repairs to arrive at a max number.Good luck!

You would need to have a fairly accurate assessment of how much you would need to spend on it to bring it up to retail After-Repair-Value (which you would then subtract from $175k). 

.$145,000 purchase price Rent $1050/moDown Payment (25%) = $36,250Rehab = $10,000Acquisition = call it an even $50,000 after closing costs Mortgage Payment = $590Taxes = Let's assume taxes are low $50/moInsurance = $75 ishVacancy (10%) = $105CapEx (10%) = $105Maintenance (10%) = $105 So with $1050/mo coming in, subtract all those expenses, you're left with $20 per month.

EV shows how much current rents are below the market combined with physical vacancyThen calculate your value as NOI/Exit Cap Rate (whatever you think cap rate will be when you sell)Then subtract rehab (get this from a PM or use an assumption) and your anticipated capital gain.The result is you maximum offer.

Though keep in mind that no two lots are identical and you'll have to adjust for the tangible differences and the intangibles.The other way to do it is to determine the lot's "highest and best use," and then work backwards from the ultimate value of the property given its highest and best use, subtracting out the hard costs, the soft costs, the builder's desired profit, etc. 

Its no home run for anyone but it gets both of you cash asap and gets their money freed up.Retail is $110,000 times 80% = $88,000 subtract out repairs and you are left with a deal for an investor at $76,000.  

You actually only have a taxable gain of $9,628 ($14,668 + $9,505 - $14,545) we add back the principle amount of your mortgage payment because it is not deductible and subtract out the deprecation we listed above.

Only adding my 2 cents re costs for others who trip onto this thread.Folks will need to adjust my prices per your area but in general I've seen the un-experienced but too HIGH a value on a used mobile home, even double wides which can be as nice as a house.You have to start with the end price, the all in price and subtract off costs to arrive at what is left over to pay for the used home.For various reasons either as a rental or as a retail sale with profit built into the sale price your all in costs need to be at $35k.  

I typically subtract 3%, of the ARV.Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent.

I typically subtract 3%, of the ARV.Realtor Fees: What is the commission you are willing to pay your listing agent (unless you are the listing agent) and the buyer's agent.