This will only give you a ballpark figure, but it’s a start and you can see if something seems to be far out of whack in one direction or the other.As for repair estimates you need to do some homework.

I'll definitely be doing my homework before making any offers.

Again, you really should do some homework becuase what works for me, may not work for you.

In order to get A's I had to do homework.

Again, I don't know if it was the bank or the listing agent (or both) that coordinated this "fraud" (as I consider it to be), but it's a great lesson to anyone who is considering buying an REO -- DO YOUR HOMEWORK!

Then request each tenant to provide you with what they have paid, take the final bill to the tenant (which he will get when you switch it back) and do the math.

Of course, everyone needs to keep in mind that this is a "general guideline" and not specific/accurate math.

Here are two sets of formulas.A simple one.Max Price = (70% * ARV) - repairsThat should generate a profit of about 10% of ARV, 15% if everything goes well.It has a couple of assumptions:1) You're using hard money, and can borrow about 70% of ARV.2) You'll take about six months close to close.A more accurate way to do the math is:Max Price = ARV - sell closing costs - holding costs - money costs - buy closing costs - rehab cost - desired profit.Sell closing costs are the costs you have to pay to sell.

That is probably just fuzzy math.

However, I heard Suze Ormon give another reason and I just want to verify the math before I get too excited...We've got $2,160 cash flow minus all expenses per month.Is it true we would have to have $675,000 at 5% interest in order to generate the same income and preserve the capital?