@Neil GWholesalers exist to find property that has value per the rehab formula of 70% ARV.That is difficult to come by hence the premium paid by investors\rehabbers.And yes wholesalers are on the hook to buy the property unless they reassign or back out.Ray

I've kind of come up with a formula to try and go by, but a deal I thought was good, after I ran all the numbers, doesn't seem so great, but I'm not sure how a .60 on the $1 isn't a great deal after the math is done.

You can also be scientific and formulaic in how you actually approach it.

@Russell Brazil is exactly on point, 2% rule works when the properties are cheap cheap cheap.The rule stems from the belief that (a) half of gross rent will go towards expenses, and (b) .6-.7 of the rent goes towards the mortgage payment. 2%-1%-.7% = .3% monthly profit.It's a very conservative formula, but just explaining why some investors stick to it.

I also want to ask was there any formula to the $20,000 offer or did you just throw it out there? 

No coding/VB or advanced excel skills necessary just some basic formulas and you're good to go.If I wasn't on my phone I'd post the one I use.

JD has a good formula .

But it's not a "discretionary" process; if you promise those units and it meets the explicit formula for a density bonus, then you're approved (you just need to follow the compliance rules as you operate the property or you could face fines, etc.)

What is your formula for making an offer?

His formula would be 100k ARV *70% = 70k.