im no guru, on my third flip now, but I analyze the deal a little differently. might help you.
I want to make 15-30% on my money. so in your case, just say you got the house for140k did 70k in renovations and holding,buying and selling costs were 30k. total of 240k. If you sell for 300k you gross 60k or 25% on your money.
so for me it would be a deal at 140k. maybe that that help
Figure out your own “rules”. Forget about letting somene else’s guidelines guide you. No one starts their own business to obey someone elses rules.
What kind of financing are you going for? That will play the biggest part on setting your own guidelines. Depending on the complexity of a project, I don’t let my total costs exceed 50%-80% of the ARV. For me (paying with almost all cash) it’s about an adequte return for the amount of work considering an appropriate amount of room for error.
“Purchase price + Renovation” is just short-hand for “EVERY COST YOU WILL HAVE”.
FYI, you forgot utilities, financing, and insurance in the holding costs.