I'm trying to put an offer together right now and I'm using a formula dean mentioned in one of his videos which is:
ARV x 0.85
-Holding Costs
Taxes
Insurance
Maintenance
Money
-Rehab
-Profit
------------------------
= Max offer
x 0.85
------------------------
= First Offer
How do you calculate Insurance and Maintenance? Is there a good rule of thumb I could use?
And how much of a profit do you usually calculate? I was using 20% of ARV. Is that to much?
I'm trying to put an offer together right now and I'm using a formula dean mentioned in one of his videos which is:
ARV x 0.85
-Holding Costs
Taxes
Insurance
Maintenance
Money
-Rehab
-Profit
------------------------
= Max offer
x 0.85
------------------------
= First Offer
How do you calculate Insurance and Maintenance? Is there a good rule of thumb I could use?
And how much of a profit do you usually calculate? I was using 20% of ARV. Is that to much?