How Much Will We Pay for a House?

We work off a formula based on what other houses are selling for in the neighborhood…ones that are already fixed up. Generally, we will take that after repair value and subtract our estimated repairs, loan costs, closing costs, and other selling fees, and after we build in a fair profit, we are able to come up with a number that works. We expect to make a little bit of profit on a lot of houses, rather than a lot of profit on just one or two houses. In addition to cash offers, we also purchase properties with seller terms, which allow us to pay WAY more than another cash investor would pay…so if you can be flexible with the timing, you can walk away with more money.

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