Going in with no experience a lender is not as comfortable that WHEN you find something unexpected you will be able to execute.

It's what you decide it the highest you can go and still achieve your financial goals from the deal.Of the many ways to calculate it, here's one:(ARV *.65) - repair costs - holding costs - closing costs - your expected profit = MAOSome folks start at 65% of ARV to leave room for pricing the finished project below market for a quick sale while also leaving additional contingency money for the unexpected issues which inevitably arise during a repair / rehab project.

Lending on auction properties can also be very difficult process so I don't recommend going auction route unless you have the cash to purchase and deal with unexpected surprises.  

Hopefully nothing unexpected comes up and you can sell for the upper end of your range!

I found out by good luck/accident. 

I had an accident 2 years ago, I was deemed at fault.

During the three episodes I saw last night there were:  Old knob and tube wiring that required $5,000 in unexpected total electrical re-wire, Ivy that had totally eaten the house and required $6,000 in new siding that was "totally unforeseen,"  a foundation problem that was going to eat $3,500 of the budget, and mold on the walls that would require new sheetrock for $4,000.  

I simply bought another house, moved into it and rented my current house out.I figured it was a lot easier to rent out AND if it didn't work out I could always sell it.That was over 10 years ago and has long since been paid-off.One of the best "accidents" of my life...

An unexpected assessment, high HOA fees, the neighbor’s pest problems, and so on; I am just researching specialty leasing, if I can call it that.

You will need some for the unexpected, trust me.Good luck and I look forward to reading more about what you find.