Hey guys, how much are you typically looking for in terms of a discount? Or do you just have a fixed dollar amount that you want to make on the deal?
It really depends on your exit strategy. If you are trying to wholesale it you need to buy it less than if you were going to rehab it. Same thing with if you are going to lease-option, rent or whatever. The basis for what you buy at all depends on your exit.
It’s all relative. You have to include the cost of repairs. 50% LTV could suck if repairs are really high. 60% LTV could be great if repairs are minimal.
Average market–ARV * .7 - repairs - your profit = offer.
You are leaving out the landlords who may buy at a lot higher LTV than a rehaber if the rent income is good. As a sub2 buyer, I would go as high as 85% myself. But I would not want to pay $5k wholesale fee.