Lesson learned – start with the ARV FIRST, then subtract all your costs from THAT number (INCLUDING your profit requirement).How do you get an accurate ARV?

Arcinio ArauzFind the real price of a vacant lot then subtract the demo costs.

"Net adjusted business profit is calculated by taking gross self employment income and then subtracting business expenses and then subtracting 1/2 of the self employment tax."

If no one is going to buy it for more than $200k there isn't much wiggle room after holding/selling costs are subtracted from the deal.

I rounded up the price of the home to included running the utilities and when looking at the overall profit for all the homes I subtracted 200K for the road (not sure if that is anywhere near correct) I called the water district and the water/sewer connection will be about $5,000 per home.

The further you go in date and radius the less reliable the comps will be.Once you have the comps, you should take 65% to 70% of the ARV (after repair value), subtract any repairs that need done, closing costs and your fees.

Subtract $112,000 (your 90k in rehab, plus 20k in medical lien and 2k in taxes) and you're at 21k for your max purchase price.

We know that from that 70% we subtract out our rehab and repair costs and this gives us our offer price.The question is what about the holding costs, commissions, closing costs, etc?

Then, I just work a conservative ARV times 0.7 and subtract my "repairs".

From that figure, subtract off the current PITI as indicated on the loan statement for the rental property.