See how a cheap, ugly property can still work if the full project cost leaves real margin after rehab, holding costs, and resale expenses.
Purchase price: $12,000. Estimated rehab: $48,000. Illustrative ARV: $110,000.
Cheap properties create excitement, but the acquisition number is only the beginning. The real question is what the full problem costs and whether the finished asset supports that basis.
This example shows why disciplined investors test purchase price, rehab cost, reserves, and exit value before calling a property a bargain.
