The playbook
A well-defined buy box filters out unsuitable properties, speeds up every decision and keeps you inside parameters that produce profitable deals. Stay disciplined, revisit the criteria when the market shifts, and always prioritize action.
Run a deal through the buy box(65% of ARV) − Repairs = Max Purchase Price
The 65% threshold builds in buffers for unexpected repairs, longer holding times and market swings. Accurate ARV and repair estimates are what make it work — lower repair costs raise your ceiling and your margin.
Market Value × 0.75 = Max Purchase Price
Buy structurally sound, cosmetically distressed properties, clean them out, add curb appeal and list on the MLS. Quick turnaround, lower risk, capital freed up for the next deal.
Market Value × 0.94 = Max Purchase Price
Buy as-is, make no repairs, and list on the MLS for maximum exposure — often with a same-day or next-day double close. Small margins, but volume and speed make it profitable.
Comps are property value, and everything in investing starts with knowing what a property is worth. Never move forward on financing, rehab plans or due diligence before you know both key values.
What the property is worth today, with no repairs. Drives as-is and wholetail offers.
What it will be worth once renovated. Drives the flip buy box and your rehab budget.
The gap between purchase price and value. A wide spread gives you options — flip, wholetail or hold. A skinny one kills the deal.
Manage risk with real due diligence, minimize holding time, and keep contracts compliant so you retain control from purchase through resale.