In this business you initially act as a buyer, then eventually as a seller. You are going to have to get used to working both sides of the street in this regard. That is good news for you — you will gain experience as a buyer that will help you as a seller, and vice versa.

You have identified a house for sale that seems to be in a condition that suggests that it would be worth renovating for profit. You have taken a walk through, taken copious notes and arrived at a ball-park figure of what it will cost you to bring it up to the point where it will be attractive to buyers. You have received comparable listings from your realtor and now have a good idea of the potential sale price once the house is renovated. The last piece of data that you need to fit into your calculations is...