| Parameter |
Description |
Estimated % of Purchase Price |
Value |
| Purchase Price: |
The amount paid to acquire the property. |
N/A |
|
| Acquisition Costs: |
Expenses related to purchasing the property, including closing costs, legal fees, and inspection charges. |
2-5% |
|
| Rehabilitation Costs: |
Estimated expenses for renovating the property, covering materials, labor, permits, and contingencies. |
20-50% |
|
| Holding Costs: |
Ongoing expenses incurred during the renovation period, such as property taxes, insurance, utilities, and loan interest. |
2-5% |
|
| Selling Costs: |
Costs associated with selling the property, including real estate agent commissions, marketing expenses, and closing fees. |
6-10% |
|
| After Repair Value (ARV): |
The projected market value of the property after renovations are completed. |
N/A |
|
