., major systems like plumbing/electrical)Full Gut/Studs Down: $85-$120 per sq. ft.Luxury Finishes: $150+ per sq. ft.For ARV (After Repair Value), you’re absolutely right—it’s all about comparable sales ("comps").

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

Another one to consider is the FHA 203(b) if the repairs aren’t too major and you’re okay handling some out-of-pocket fixes.

The only major difference is usually prepayment penalties and maybe some obscure, unusual loan terms in certain cases. 

But if this is purely an investment, the high maintenance fee is a major concern.Now, let’s look at what happens in the next 5 years:Refinance After 5 Years: Assuming 4% appreciation, your property value will increase to $1,216,653.

I currently have a majority of my savings invested in the stock market but am looking to diversify into real estate and other ventures to achieve my financial goals.

Class D Property:This is where we find many older properties of more than 30 to 40 years old, in need of major repairs.

Either way sales is dog tough and the vast majority of folks out there watching these u tubes and getting excited simply do not have the chops to do sales its not in their DNA or personality  or family situation.Our Daughter in Vegas who has been selling RE for 9 years now is doing very very well..

A lot has happened since starting, between material shortages in SWFL for a while, a massive hurricane, a period of power outage, damages to various parts of the city (and major damages to surrounding cities), high demand in labor/resources, a transformation in permitting systems, and a boom in construction in general. 

Even cash flow on a decent property from years ago doesn’t compare to the appreciation over the same time.I have seen cash flow investors that end up investing in Ohio or some other C or D neighborhood regret their decision after realizing there is zero appreciation in those places and cash flow won’t even cover a major expense if something happens.