Be conservative with your numbers – When using a cash-on-cash calculator, I recommend budgeting at least 10% for maintenance and repairs instead of 5%.

Purchase price: $2,800,000 Cash invested: $560,000 The property is a three-story multi-family residential building with six independent units, initially facing significant challenges due to poor conditions.Renovation Investment Summary:- **Structural Repairs:** $250,000- **Kitchen Modernization:** $100,000- **Bathroom Updates:** $50,000- **Exterior Improvements:** $100,000- **Holding Costs:** $50,000- **Property Taxes:** $30,000- **Insurance Costs:** $10,000- **Management Services:** $10,000

I do pay him part of the contractor fee upfront (even though I'm buying the materials) because he has to pay his crew promptly and I want him to have the funds to do that so I'm not running to the bank.

@amirkhan Thank you for your prompt response!

Let’s break it down with the 70% rule to see if it’s investor-friendly:ARV: $190,000 (taking the middle of $180K-$200K)70% of ARV: $190,000 * 0.7 = $133,000Minus Estimated Repairs:Roof: $20,000AC: $4,000Additional repairs (general estimate for a property needing updates, say flooring, paint, minor plumbing): $10,000-$15,000Total Repairs: approx. $35,000Max Buy Price for Investor: $133,000 - $35,000 - $10,000 (wholesale fee) = $88,000Since you’re getting it for $91,000, you’re close, but to make it irresistible, consider negotiating the purchase price down a bit further.

It will need approximately 20k in repairs and have a ARV of 80 to 120k.

I left that job to join Roche Tissue Diagnostics where I repair medical instrumentation across the Midwest. 

I am hopeful they will want to work with me to get things repaired and updated to validate appropriate rent increases.

If you buy real estate, you will spend hours and days and weeks and months of your life dealing with it… Home repairs, guests,… An investment really has to be pretty amazing to sacrifice all that time for itThe houses I own I bought many years ago at dirt cheap prices and dirt cheap mortgage rates.

Appreciation is great, but not when all of that appreciation is eaten by the repairs you aren't doing.