We use financial models that calculate our gain on sale or REO or, additional lost against reserves already booked on REO.

my thoughts would be.. have 3 contractors come out and give you prices for re-modeling your own home. 

But... there are a lot of people flipping homes in the Phoenix area and I'm just not sure I'm aggressive enough to compete in a market like that.So what I'm mostly eying to start is the Buy-and-Hold model. 

Lots of options in styles and colors.

Most crimp joints that fail were either the old style cheap 90s or done improperly.

Install new style handle hardware.

I prefer a more conservative exit, particularly 5-10 years out.I typically review the stress test IRRs at varying exit caps and see if the asset will perform at more conservative exit caps (and many of these properties should be fine even at levels above +100 bps).I invest with a self storage operator who typically models exit caps that are 150 (sometimes 200) bps higher than current market cap rates...with an exit in six years; so, +25 bps per year rather than +10 bps. 

Of course it's slightly different business model with deposits and rent and equipment damage and such.

I know Steve Chader (he is from AZ), and admire his business model. 

Then when your attacks start, sit down, pull up your models, run through every scenario and see that your offer makes sense no matter what.