A simple way to check is using the 70% rule—investors typically want to buy at 70% of the after-repair value (ARV) minus repair costs.

Think if one house grosses 1k/month, then it may net say $500/month (after maintenance/repairs, CapEx).

Several takeaways- 1. the ProFormas are complete fiction, listing 5-10 percent for vacancy and repairs and on the flip side, steady growth on appreciation and rent increases.

The first, and most critical, step is to determine the property’s After Repair Value (ARV).

Then focus on finding professional vendors that can clean/repair, as necessary.

Several takeaways- 1. the ProFormas are complete fiction, listing 5-10 percent for vacancy and repairs and on the flip side, steady growth on appreciation and rent increases.

In hot markets, some wholesalers and investors use 80-85% of ARV (minus repairs) instead of the typical 70% to stay competitive.A few tips:1.

Finding an agent, finding contractors, overseeing repairs, finding a property manager, finding tenants, etc.

Make sure you’re working with a lender who has experience with 203(k) loans and a contractor who understands the program’s requirements.2.Loan Process Can Be Slow – Unlike a standard mortgage, the lender will be heavily involved in the renovation funds, which means more paperwork and potential delays.3.Strict Repair Guidelines – The work has to improve the home’s safety and livability, so luxury upgrades usually don’t qualify.4.Living Through Renovations – If you go with a Limited 203(k) (up to $35K in repairs), it’s usually manageable, but for a Standard 203(k), major work might require you to live elsewhere for a bit.It’s a solid strategy, just make sure you’re working with the right lender and contractor so things go smoothly.

Or nitpick small things that need repair until it exceeds $500?