Was there a formula used or was that a hypothetical scenario?

Can you provide me with the formula you just used so I can have this for the future?

Once you have established an After Repaired Value, then apply your percentage formula (generally anywhere from 60-80%) and then figure in your repairs.

To be honest though, I'm fairly new to all the math formulas that are probably second nature to an experienced investor.

Also I'm trying to understand if the buy and hold model for investors uses a different formula than if I was to flip the houses. such as if I buy at 300,000 and the net income is 30,000 a year, does the 10% a year against the purchase price solidify the deal?

I've looked at several areas - both local and hours away - but unsure how others decide to pick their markets.Does anyone have any formulaic ways they narrow down where to invest? 

That is a widely used formula for determining your max offer, but it really has nothing to do with determining ARV. 

I don't have a magic formula for how many in each name, it is more a matter of your choice.

The two most used flip formulas I've seen for max possible purchase price are ARV*0.70-Repair Costs and ARV-Repair Costs-Quiet Costs (Including Closing Costs, Commissions, Holding Costs, etc)-Minimum Profit.

(that's not to say it might not be a prospect for a flip, that's a totally different formula)andy