How to Evaluate a Wholesale Real Estate Deal in Ohio, Texas or Georgia in Under 10 Minutes

Not all wholesale deals are created equal. The real estate industry is full of wholesalers who present inflated ARVs, underestimate repair costs, and structure deals that leave little or no profit margin for the buyer. Learning to evaluate a wholesale deal independently — using the same framework professional investors use — protects you from bad deals and helps you move quickly on good ones.

Step 1: Verify the ARV Independently

The After Repair Value (ARV) is the most important number in any wholesale deal — and the most frequently manipulated. A legitimate ARV comes from comparable sales (comps) within the last 90 days, within a half-mile radius, with similar square footage, bed/bath count, condition, and lot size.

How to verify: Pull your own comps from Zillow, Redfin, or PropStream. Look specifically at closed sales (not list prices or Zestimates) in the last 90 days. If the wholesaler’s ARV is significantly higher than what the comps support, that is a red flag.

Step 2: Build Your Own Repair Estimate

Wholesalers often provide repair estimates — treat these as a starting point, not a final number. Walk the property yourself or send your own contractor. Key categories to evaluate in Ohio, Texas, and Georgia properties:

• Roof condition and remaining life
• HVAC age and condition (critical in Texas and Georgia heat)
• Plumbing (especially in older Ohio properties with galvanized or cast iron pipes)
• Electrical panel and wiring
• Foundation (look for cracks, settling, and drainage issues)
• Kitchen and bathrooms — how much cosmetic vs. structural work is needed

Step 3: Apply the 70% Rule

The 70% rule is a quick filter: a fix-and-flip deal should not cost more than 70% of ARV minus repairs. Formula: (ARV × 0.70) – Repair Costs = Maximum Purchase Price.

Example: ARV $200,000, Repairs $30,000. Max purchase price = ($200,000 × 0.70) – $30,000 = $110,000.

If a deal is priced at $110,000 or below in this example, it may work for a flip. Above $110,000, you need a compelling reason — perhaps a particularly strong rental market for a buy-and-hold strategy, or significantly lower repair costs than estimated.

Step 4: Check Title Before Committing

Every deal package should include a title search or at least a summary of known encumbrances. In Ohio, look for delinquent property taxes (check with the county auditor). In Texas, look for HOA liens and ad valorem tax liens. In Georgia, check for IRS liens, judgment liens, and any clouded title issues from prior owners.

Step 5: Know Your Exit Before You Enter

Before you close on any wholesale deal, you should have a clear exit strategy. Fix and flip requires understanding your local buyer market and realistic after-repair listing price. Buy and hold requires understanding rental rates, vacancy rates, and your operating expense ratio. Wholesale assignment requires having an end buyer already in your network.