Reiwalf,This would be a legitamate business model for a contractor to get into.

Please understand, I didn't visit either of these homes and did not have a professional inspection done, so the actual cost to repair these homes could very well skew the numbers.By the way, I read your blog and better understand your business model now.Ken

We do our own mangement (landlording).It is fairly easy to learn more about my model - look to the left of your screen for "Meet the Investor".

Was a model home in Orange County Ca.

Keep in mind that our business model is focused on the more blue collar areas of Indianapolis, and the home prices are in the $60K to $75K range.

This is a business model that I do not work in as much as I would like to, so I am excited to see how others feel about this topic as well!

I am working with a friend who packages deals to investors wholesale - he buys foreclosure homes in Atlanta cheap, has a sister company renovate, and places a LP tenant (usually section 8) so there is cash flowing.

Other's were closed that way when the loan was run through DU/LP.

Those homes aren't as the same as the model I was talking about.So, let me guess, for a 150k home, you need a 1500 dollars building permit, would the price for the building permit be the same if the house was 79k dollars?

We rehab to a higher standard because we found early on that selling "paint & carpet" rehabs in war zones was a horrible business model.