Kentucky Conundrum

How do you determine the opimal rhab budget to maximize profit in a competitive market like Lexington's? I've seen fix-and-flip investors overspend on renovations, only to yield minimal returns. A thorough analysis of local market trends, ARV, and holding costs is crucial. For instance, a recent project in the area had a purchase price of $120,000, rehab scope of $30,000, holding cost of $10,000, and an ARV of $180,000, reulting in a projected net of $20,000. However, this margin can quickly evaporate if rehab costs exceed expectations. What strategies do you use to balance rehab expenses with potential returns, and what local market insights do you consider when making these decisions?