How Do I Find The Maximum Purchase Price For A Home California
This is my first posting hope it makes since and has enough information. I need help figuring out the MPP (Maximum Purchase Price ) for a home in California.
The owners asking price is 300k and I have figured rehab cost of 40k. The owner has lived in this home from day one, it is payed off and the owner wants out 
. The Comps are coming
back at 360k for this area. I don’t know what to put my offer price at because I don’t know were to get the other figures that I need such as: Purchase Cost = (loan fees, loan points, loan broker fees, closing cost, appraisel fees, buyer’s broker fees). Holding Costs = interest expenses for loans, utilites, taxes and insurance. I have a profit margin of 10% and a contingency factor of 3%. So Here are my questions: Is there a simple mathematic formula that I can use to come up with an MPP or do I start calling around to get these figures? What should my offer price for this home be? Is my profit margin low or should it be more? When I get the MPP figured out is that what I offer the seller or should I start lower just incase the owner wants to counter offer? All help would be greatly appreciated and let me just say I think this site ROCK’S. 
I would suggest you start doing some homework and find out some of the figures you yourself mentioned in your post. It is important to keep in mind what kind of rental money you could get for the property and then take into account your investment plus additional expenses for taxes, insurance, maintenance, etc., and see if there is still either a profit to be made as a monthly cash flow or if there is potential for the property to appreciate in value. I am in CA as well and the R.E. prices in my area have gone up at least 50% in the last 3 years. Once you have the numbers available to you, you will be able to make a more educated choice as to what your next step should be. Shop around for financing without allowing anyone to pull your credit report or having to pay for anything at this time. Good luck!
I never pay more than 65% to 70% of the Retail Value minus repairs.
This allows me to pay for all my costs and make a profit.
If I go 80%, I will come out even, or lose money.
Hope this helps!
Mrs. Meltzer