Is there a percentage that works better than most as to the discount the lending institution will accept? Is there an ammount too high that just isnt worth it?
Howdy Verb:
There are a lot of variables and no pat answer.
The condition of the property is one variable as well as what you plan to do with the property. Even the asking price may be well below the market value as well. I bought one last year where the ARV was $150K and I got it for $30K. We spent almost $80K rehabbing it. The percentages on this deal 20% 0f ARV will almost never work. Best to just take each deal one by one and evaluate it on its own merrits.
Also what you intend to do with the property will effect the % you can pay. If it is renhtal property that is in good shape and cash flowing you may be able to pay a bigger %