To my surprise I saw a massive fluctuation between extreme highs and average lows.

Material costs are similar across the world (the labor costs fluctuate dramatically) so knowing what a rehab will cost within 20% is realistic.  2.  

What kind of seasonal fluctuation do you experience?

Mike Perez  Most investors don't recommend using a HELOC to buy a traditional LTR investment property because interest rates are fluctuating it can be very difficult to pay down the principle.

As a room can fluctuate significantly from the windows to the innermost part of the room.

The fallacy of my thought process was that rents remain stable, interest rates don't matter and price points compared to the market all fluctuated the same.  

I personally think the ceiling that makes sense is around $130,000… reason being, our average sold price is mid $200’s to upper $200’s (near $294k at the height, some fluctuations now) and so I feel really safe with a renovated asset in the mid $100s knowing that odds are I get some built in equity with appreciation giving us room to average out closer to the area average.

This is a direct quote from PRnewswire: ‘The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors that: (1) the algorithm used by the Company to make offers for homes could not accurately adjust to changing house prices across different market conditions and economic cycles; (2) as a result, the Company was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations; (3) accordingly, Defendants overstated the purported benefits and competitive advantages of the algorithm; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.’

MF Properties don't fluctuate as much some other parts of the country have in the past few years, but we have stable, steady growth. 

Your problem is you dont have enough reserves to absorb the short term fluctuations.