Investor & Fixer-Upper Guide

Ian Palast holds real estate in five states. He has flipped, renovated, held, and resold across California, Illinois, Iowa, Nevada, and Texas across more than thirty years. The math in this guide is the math he uses on his own deals.

The ARV equation

After-Repair Value (ARV) is the projected resale price of a property post-renovation. The flip math is straightforward: Max Offer = ARV × 0.70 − Repair Costs. The 70% factor covers acquisition costs (5-7%), holding costs (insurance, utilities, property tax, debt service for 3-9 months), resale costs (5-8%), and the target margin for the operator. Adjust the factor up or down depending on your specific debt cost, expected hold time, and target margin.

The catch: most novice flippers get the ARV wrong. They use Zillow or a single optimistic comp, not a weighted average of true closed comps within 1/2 mile and 6 months, adjusted for plan match and finish level. A 5% miss on ARV is the difference between a profitable flip and breaking even. Ian runs ARV estimates as part of any investor consultation, free.

Repair cost estimates that match reality

Las Vegas contractor pricing as of recent cycles, directional, per square foot of work area unless noted: full kitchen $25K-$60K depending on cabinets and counters; full primary bath $12K-$25K; secondary bath $7K-$15K; flooring (LVP throughout) $5-$10/sf; interior paint $3-$5/sf; roof tile replacement $15K-$35K depending on size; HVAC swap $6K-$12K per unit; pool resurface $5K-$12K; pool equipment overhaul $3K-$8K; landscape refresh (front yard, modest) $3K-$8K. Plan for 10-15% overage on every line. Your contractor relationship is the single most important asset in this business.

The contractor network advantage

Ian has been in transactions with the same handful of Vegas contractors for years. Roofers, HVAC, plumbers, electricians, painters, flooring, pool, landscape, structural. When a new investor engages Palast Realty Group on flip-side work, the contractor introductions are part of the relationship — no kickback, no markup, just shorter learning curve for the investor.

The 2-Week Cash-Only Listing Strategy (sell side)

When the flip is done and you list it, Ian deploys his signature 2-week cash-only listing strategy for properties where speed and certainty matter more than the last 5% on price — or when the finished property still has buyer-side concerns (lender appraisal risk, specific deferred items, unusual layouts). Full strategy detail in the Seller’s Guide.

Best Vegas neighborhoods for value-add

Eldorado (North LV) — older inventory in the $250K-$350K range with renovation upside. Older Spring Valley (Southwest LV) — under $400K entries with renovation paths. Selected Henderson 1990s-era streets with paint/floor/kitchen-only updates. For larger value-add plays, Mesquite and Pahrump offer different cap rate math (lower entry, smaller buyer pool on exit). Laughlin manufactured-home product trades at substantial cap rates for the right operator.