In my experience the ARV is determined by an appraiser, not your estimate.To estimate the total cash you need to buy, rehab, and sell a property, start with the buy and rehab costs.

Then quickly as soon as I can transfer the deed sell the property at an amount less than market value in order to attempt to have a quick sale.I realize that the properties still need to be researched and a true market value determined.

I am having the hardest time deciding how to determine this number.

Otherwise, cap rate is intended to help you determine the value of a piece of property.

Most of it makes sense to me, except what happens to the new "owner" (the person who placed the highest bid at the sheriff's sale) if the previous owners (who defaulted) have 1 year from the sheriff's sale to redeem their ownership?

Any time I've ever done construction, I just got a contruction loan and the bank accepted my ownership of the land in lieu of a down payment.The bank wants security and the clear title to the land quarantees that there is equity in the project.

Section 8 tenants could loose their access to their funding (at least in Tx during our ownership interval) if they caused problems, we had very little trouble.

I'm trying to determine all this , I didn't mention it in my origional post, but i'm buying a property to use as a rental (got it super cheap) and it needs a complete remodel, structure is great, but everything has been stripped out, and all the walls taken down to the studs.

This post is one investor's techniques for building a quality out of state team; starting with how he qualifies Realtors and Property Managers, and determining if a PM will protect his interests.

This is a blessing and a curse to most of us as we have the Determination to MAKE a DEAL "Go Right" and Get It Done!