However there is 2 very similar duplexes down the street renting for $650 /month, so there is the opportunity to raise rents.I contacted a good local lender and here are the numbers I was given:Sale Price / Rehab = $116,000 (including rehab funds of $6k)Loan Amount: $111,836Interest Rate: 4.75%APR: 5.813%Payment = $923.66Cash to close = $4,208.34 (downpayment of 3.5% on $16,000)Payment BreakdownP&I = $583.39Property Tax = $161.36Hazard Ins = $69.00PMI = $109.91Total Payment = $923.66The duplex has brand new windows throughout, new furnace in one side, new hot water heater in one side, recent roof repairs, and new front door on one side.

The 55% is a proven model over time even if you buy a brand new building that the costs average out around this number.A bank will usually give you loan use more loose numbers but the bank doesn't care about you making a profit each year just your ability to pay the mortgage and give them their interest.

Name brands explain part of the price difference, but not all of it, so something has to give: Material, tolerances, etc.

We're both brand new at real estate, but this is what we want to do.

You could have a brand spanking new remodeled Taj Maha on your handsl, but if it’s not what “good” tenants want then you will be left with the crowd that you don’t want.

The variables that your deciding as an investor to just ignore buying apt buildings or commercial triple net or anything in between junker houses and brand new construction.

I have a property with a brand new furnace from 2008.

Not like a brand new wood floor, but the only way to achieve that it to replace it or put a new layer over it.Wood flooring can only be sanded so many times.

Justin Atkinson - While I totally understand the "if it doesn't add value, don't do it" approach that a lot of rehabbers take - At some point you also have to consider your company's brand and image.

I also loved your interview on the pot cast3 and recommended it to many of my friends.I am curious if you buy brand new or used appliances and HVACs for flipping those units?