When they told me how much they wanted, I felt they were a little optimistic with their asking price and their estimated rehab budget, but after a few rounds of negotiating over text, we agreed on a price that was $15k under their original asking.The numbers were:Purchase price: 80kseller repair estimate: 35kARV: 180k to 195kMy hard money lender would only lend up to 65% of the ARV and they chose to go with a conservative number at $175k, so based the 65% rule I had to be all in at $117, so that gave me a budget of $37k. 

During the inspection we did not find signs of water leakage but I will be able to see more when I remove the wood tomorrow, so am not ruling that possibility out completely.  

@Nick JonesYou are not land locked to NYC prices, there is no rule you need to invest in your backyard.Don’t get me wrong it’s convenient to be able to drive to your property but not a most.

The FDIC and many state regulatory agencies will require the lender to substantiate a global portfolio freeze based on value.In the past, I've frozen my entire portfolio but I was able to document that, on a global basis, values had decreased in excess of 50% from origination value.

@Kim BaylessSee if you can get a businessline of credit instead some lenders will go as high as 50 k .

I still got an inspection done though, just to know what problems I had to formally address - can't let the sell fall through at the flip.I don't think that I'd remove it for most deals though, so my example is the exception to the rule. 

A 50 year old building on Park Avenue is always going to fetch a higher rent than a brand new property in a suburban area in the Midwest. 

They charge 10% gross collected rent , and take 50% first months rent when they sign a lease. 

What if it was more along the lines of $50-75k?

The rule of thumb is it lowers it 15 degrees from what outside is when it is low humidity...so even if it is 100 with no hum that is still only 85 degrees...best be getting A/C.