Posted by JoeB(Atlanta) on April 25, 2000 at 21:29:05:
Hi Charity, the formula we use (similar to LeGrand’s) leaves much more for profit AND buying/selling/holding costs.
ARV: 95-99,000 (let’s say $95k), minus
Rehab $15k, minus
BSH $14k (we use 15% of ARV for buying/selling/holding costs), minus
Profit $15k (we leave $1 to $1.25 of profit for each $1 of rehab), EQUALS
Max Allowable Offer (MAO) of $51k.
Best of success,