[SAMPLE] Fictional preview material. This discussion was written by the site administrator to preview the Community design. Names, numbers and scenarios are hypothetical. It is not advice and not a real member post.
Underestimating repairs is the classic flip mistake. Here is a hypothetical walkthrough for a 1,500 sq ft house, to show how a quick estimate can be structured. Costs vary a lot by area and contractor, so these figures are illustrative only.
- Roof: $9,500
- HVAC replacement: $8,500
- Kitchen: $14,000
- Two bathrooms: $9,000
- Flooring (1,500 sq ft at $4.50): $6,750
- Interior and exterior paint: $7,500
- Electrical fixes and panel: $3,500
- Cleanup and landscaping: $2,500
That is $61,250 before a contingency. A 15% contingency adds about $9,200, so the working number is about $70,400.
If the after-repair value (ARV) is $400,000, the common 70% rule of thumb gives a maximum offer of roughly $209,600 (70% of ARV = $280,000, minus $70,400 in repairs). Treat that as a screening shortcut, not a guarantee, because holding, selling and financing costs differ by deal.
How do you walk a property to build your list, and how many bids do you get before you offer?
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