Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

Hey @Marissa Mallamo - Good question :) So, the ARV is not really used in the calculation, but can be useful for estimating the future appreciation potential.

And, no one can truly comment on the deal without a rehab $ estimate.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

Consider that the developer is combining my small 1 acre parcel with an adjoining 35 acres, and I estimate that his company will net between 7 and 9 million bucks after a few years' work and the sale of all residential lots in this project.

I am not a house flipping investor but a GREAT place to start would be by purchasing "The book on Flipping Houses" as well as "The book on estimating rehab costs" ..

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

Hi Scott,There isn't a whole lot of information to work with in your post without knowing where the home is located (to see if your rent estimate is good), whether the maintenance cost is reasonable given the age/condition of house, etc.The two main questions I'd have on the info you did provide are whether you're accounting for vacancy, utilities, and property management costs, even if you're initially expecting to self-manage.Regards,Mike

I reviewed the pictures, had an inspection done, estimated rehab costs and then made an offer.

I wouldn't mind starting off with a cash flowing property to get my feet wet, then sell it afterwards, so I can start accumulating some cash for flipping.