What investors pay—and how we make money.

By Justus D. Eapen · Published by Residios · Editorial standards

Publication date not recorded · Updated October 30, 2026

Authorship does not imply professional review. Updated dates are site records, not evidence of legal, tax, or mortgage review.

We tell everyone on this site to ask one question of anyone circling their house: how do you get paid? It would be dishonest not to answer it about ourselves. So here it is, straight, along with the arithmetic investors, including us, use to set an offer.

Try the buyer's math worksheet ↓

What Residios is

Residios is a buyer, not your agent. We help a family facing a house decision compare the options in writing before anyone signs anything. If selling to us is one of those options, we identify it as ours and show it beside the alternatives. Decision first, offer second.

When selling to Residios is one of the options, we say so and show it beside the others.

How we earn

Residios buys houses for cash as a principal. We aim to earn a margin from property we purchase, after repairs, holding costs, and other transaction costs. That gives us a financial interest in the price you accept. We are an interested buyer. We do not present ourselves as your agent or as a disinterested reviewer, and we do not guarantee that any cash sale will close.

Every Residios offer shows the after-repair value we used, our repair estimate, and our margin. You can compare those assumptions with what listing or another path would likely net you before deciding.

Our rules

We label our interest. When one of the options is a sale to Residios, we say so before you decide.
We show the offer math. Every offer includes our after-repair value, repair estimate, and margin.
We compare the alternatives. Recommendations are tied to the numbers in the written comparison. When listing would likely net more, we say so and suggest you choose any agent.
You choose. The comparison is free and creates no obligation to sell to us.

What an investor pays, and why

For a buyer planning to repair and resell, one explicit way to budget an offer is to estimate what the house could sell for after the work, then work backward:

Offer = after-repair value − repairs − holding and financing − buying and resale transaction costs − target pre-tax profit.

After-repair value (ARV) is an estimate of the resale price once the work is done. It is not the house's current as-is value, and it is not what you would get by listing today without repairs. Repairs are the buyer's budget for the work. Holding and financing covers months of taxes, insurance, utilities and borrowing while the work happens. Transaction costs cover buying from you and reselling later: commissions, transfer charges and closing fees. Target profit is the margin the buyer wants for taking the risk. It is a goal, not a guaranteed result, and not a universal or fair margin; every buyer picks their own.

This is a repair-and-resale model, not a formula for every investor. A rental buyer may instead work from rent, operating expenses, financing and a target return. Those plans can produce different offers; this worksheet does not model rental income.

Hypothetical Fairfax County, Virginia example, 2026. All inputs are assumptions, not market statistics or a completed deal.
Line	Amount
After-repair value	$500,000
Less repairs	−$80,000
Less holding and financing	−$24,000
Less buying and resale costs	−$36,000
Less target pre-tax profit	−$50,000
Highest offer under these assumptions	$310,000

Small changes in the estimates move the offer dollar for dollar:

ARV 5% lower ($475,000)$285,000

Repairs at $100,000$290,000

That is why we show you our ARV and repair estimate. If you think either is wrong, you can say so with evidence, and the number should move.

Do not subtract your mortgage here

The buyer's model ends at the purchase price. Your existing mortgage does not change what the house is worth to a buyer; it changes what you keep. Payoff belongs in your own net calculation, below, and it applies to every path, not just a cash sale.

The 70% rule is a shortcut

Some investors use "70% of ARV minus repairs." In this example that is $500,000 × 0.70 − $80,000 = $270,000, against $310,000 from the explicit budget. The 70% rule is a rule of thumb, not a law and not a fair-price standard. Its 30% haircut is meant to roughly absorb holding costs, transaction costs and profit, so do not deduct those allowances again on top of it. Ask any buyer which method they used and to show the lines.

"If the path that's best for you is one we earn from, you'll know it's ours, and you'll see every other option right beside it."

Start with a free conversation. We'll lay out every option, including the ones that earn us nothing.

Start a conversation

About Residios → What We Do → Reading Investor Proposals → For Professional Partners →

Hypothetical worksheet

Try the buyer's math yourself.

Change any line to see how a buyer's ceiling moves. Everything runs in your browser. Nothing you type is sent or stored. This is not an offer and not an appraisal.

Highest offer under these assumptions $310,000 Total deductions from ARV $190,000

This is the most a buyer using these assumptions would pay. It is not what the house is worth to you, and not what you would net.

If deductions exceed ARV, the result goes negative. We show that rather than hiding it: it means no price meets these assumptions, not that the house is worthless.

Your side of the table

The offer is not your net. Compare like with like.

A hypothetical 2026 Fairfax County, Virginia house needing the same work. Never compare a $500,000 repaired value to an as-is cash offer as if the seller avoided the rehab: the fair comparison is selling as-is on the market versus selling as-is for cash.

List as-is with an agent

Assumed as-is sale price	$350,000
Less selling costs	−$21,000
Less carrying costs while listed	−$4,000
Less mortgage payoff	−$150,000
Estimated net before tax	$175,000

Sell as-is for cash

Cash offer	$310,000
Less assumed seller closing costs	−$2,000
Less mortgage payoff	−$150,000
Estimated net before tax	$158,000

Under these assumptions, listing likely nets about $17,000 more. A direct sale may still be worth considering if a credible faster timetable or avoiding showings matters more than that gap—but verify the funds and contract conditions rather than assuming a cash closing is certain. If the tradeoff is not worthwhile, choose any agent you like to explore listing. We would say the same in your written comparison.

Net sheet comparatorPut your own paths side by side. Carrying cost calculatorWhat each month of waiting costs. Repair vs. sell breakevenWhether fixing first pays back. Reading investor proposalsQuestions to ask any buyer.

The short version

Three sentences.

We buy as a principal

We aim to earn a margin on property we buy, not by acting as your agent.

We show the offer math

Every Residios offer shows the after-repair value we used, our repair estimate, and our margin.

We label our interest before you decide

When one of the options we're presenting is ours, we say so explicitly, before you choose anything. You always see the full picture, including the options where we earn nothing.

Sources and limits

Every figure on this page, including the ARV, repair, holding, transaction, profit, sale price, selling cost, carrying cost and payoff amounts, is an assumption chosen for illustration. None is a sourced market statistic or a documented Residios transaction. Taxes are not modeled.

Consumer Financial Protection Bureau: Closing Disclosure explainer
Describes the closing-cost categories shown on the Closing Disclosure for covered mortgage transactions. It does not prescribe a form for cash sellers or any specific cost percentage.

General information only, not legal, tax, or financial advice. A cash offer is not a guarantee of closing; read every contract and consult your own advisers.

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