I've got what I consider a healthy cushion for repairs as well as holding costs, and we went fairly conservative with ARV.Note: I'm not looking to be convinced to not do it, I'm interested in hearing from those who have fixed and flipped.

@Warren Garceau I was reading this with a huge smile on my face!!!

@Nick Causa80% can be achieved but you will need a very healthy DSCR.  

Regardless, as long as you got a price you're happy with then smile, sell and move onto the next project.

Steve, it is a very healthy question and it shows you are thinking critically.

$40K (per unit) is a healthy rehab budget for a 2/2.5 rental unless it's completely distressed, but if that were the case, I'm not sure that it would have been listed at $245K? 

A disturbing number of them are living in way too much house, driving way too much car, and are not saving or investing enough of their healthy paychecks.

Nice cash deal, getting the bank-owned home for cheap, it looked to be about a month's work for the contractor and a healthy profit for the owner once it was sold.

He bought the land for $1200 back in the 1970's and he just wanted to finish the project.I will list it as three separate listings, and the numbers are very healthy for my market (university town).When I run my personal proforma, I don't look at the AirBnb numbers. 

My personal preference is a mix of free & clear and leveraged, with good tenants in every property, and a healthy cash reserve to weather any storm.