Rehabs ALWAYS take longer than you expect, ALWAYS cost more, it ALWAYS takes longer to sell, and you ALWAYS sell for less than you thought.The rule of thumb for fix and flips is that if your buy and rehab costs are 70% of the ARV, you will make a 10-15% of ARV profit.

I've read about the 50% and the 2% rule and I think I have a clear understanding of it.

on properties that aren't even listed on MLS....Now, I understand the basics to the 2%/50% rule.

I don't think there is a hard and fast rule although I like dafly's line about 4-5 showings and 2 offers/month.The problem is that you asked specifically about INVESTORS so the above rule would not apply.

Hi Nationwide Jus curious to know how the 50%-rule-deal and not-a-50%-rule-deal are bad and good respectively.

Building on what Wheatie said, using your more specific financing assumptions ($5K down, 6.3%, 30 years), along with the 50% rule, you get the following:Gross rent: $470Expense percent: 50%Expenses: $235NOI:$235Payment: $209Cash flow: $31+/monthSo, that's $369/year cash flow, which at least is positive in terms of pure cash flow, but let's calculate the returns:Cash-on-Cash: $369/$5000 = 7.38%Total Return (w/equity accrual) = 15.04%So, not a great return, but maybe not as bad as was originally portrayed; keep in mind that this doesn't include closing costs, which would reduce your return by a percent or two).

Hi, this is interesting, finding a way to legitimize, justify and bring an aspect of fairness to an activity that is usually promoted in an unlawful manner.

I'd say go for it full bore on your marketing, unless there are homeowner association rules against banners or signage.

I know maitainence should be 10% plus legal fees and south Florida seems to need a 70% rule.

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