Answer
Maximum Purchase Price = After Repair Value - Repair Costs - Buying Costs - Holding Costs - Selling Costs - Financing Costs - Profit
Maximum Purchase Price = $200,000 - $65,000 - $2,000 - $3,750 - $16,000 - $7,500 - $30,000
Maximum Purchase Price = $200,000 - $94,250 - $30,000
Maximum Purchase Price = $75,750
In this scenario, the seller is asking for $85,000 which is $10,000 more than the recommended purchase price of MPP Formula.
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