Sale Price$171,000 - $55,000 (Rehab) - $13,680 (8% fees) - $40,000 (profit) = $62,320 MAOFrom talking to other investors and doing research, typically a Novation allow more money to the seller, correct? 

One thing I suggest doing as you do your research as well is to find a property on AirBnB that you like. 

When I have some free time, I'll research other options that won't cost a fortune for the small guy.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

I would recommend that you do your research and seek out the best property manager in your area. 

I would also suggest researching the developer’s experience with similar projects.

Of course have your costs researched first bc the buyer will want to know how much it will cost them to buy.

Hi Melissa,It sounds like you’re putting in some great thought and research into your investment strategy!

Research the Market:It's essential to comprehend the local real estate market before you start flipping residences.

If you have the ambition, you can figure out almost anything now a days through some youtube research.