Fix & Flip
(65% × ARV) − Repairs = Max purchase price
- ARV
- $320,000
- Repair budget
- $55,000
- Contract price
- $130,000
Buying at $130,000 leaves $23,000 of cushion under the buy box.
- 65% of ARV
- $208,000
- Less repairs
- − $55,000
- Max purchase price
- $153,000
- Selling + holding costs
- $40,800
- Projected net profit
- $94,200