1. The ARV Mistake ($130k is too low) She states that her price-per-square-foot comps are putting the ARV right around $130,000. For a 2,128 sq. ft. 4-bed, 2-bath home, an ARV of $130k equates to just $61 per square foot. In the 49037 zip code of Battle Creek, a fully renovated 4/2 at over 2,000 square feet will command a much higher price point: Standard 3 to 4-bedroom homes in average-to-rehabbed condition in 49037 regularly trade between $150,000 and $220,000+. Larger footprints over 2,000 sq. ft. easily cross the $180k–$230k range if finished out well. If she anchors the ARV to a conservative $180,000 ($84/sq. ft.), the mechanics of the deal shift completely. Scenario A: Using Her Flawed $130k ARV If the property truly tops out at a low $130,000 retail limit, the deal is incredibly tight: $130,000 × 70% = $91,000 Minus $35,000 Repairs = $56,000 Maximum Allowable Offer (before fee): $56,000. Because she locked it up at $55,000, she only leaves herself a razor-thin $1,000 assignment fee if she tries to flip it to a strict 70%-rule flipper. Scenario B: Using a Realistic $180k ARV If she pulls accurate comps for a large, renovated 4/2 frame and hits a more realistic $180,000 retail marker: $180,000 × 70% = $126,000 Minus $35,000 Repairs = $91,000 Maximum Allowable Offer (before fee): $91,000. Because she has the seller under contract at $55,000, she is sitting on a $36,000 spread between her contract price and what an investor would willingly pay for the deal. That's what Gemini is saying 👆 Hope this helps.