How We Calculate Your Cash Offers

We believe selling your home should be simple, stress-free, and fair. At Manuel Capital, we don’t just make offers, we explain them. This page walks you through exactly how we calculate your cash offer, using real numbers and a straightforward method.
  • No secrets
  • No fine print
  • Just real numbers

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Two Core Offer Types: Flip vs. Rental

The way we calculate your offer depends on how we’d use the property:

Flip

If it’s vacant, outdated, or needs work, we may
renovate and resell it.

Rental

If it’s already occupied or in good shape, we
may keep it as a rental.
As a reliable cash home buyer in Chattanooga, we’ll walk you through both methods, and if your situation doesn’t quite fit either box, we’re flexible. The goal is to find a solution that works for you.

Flip Offer Formula

If we plan to flip the home, here’s the formula we use:

Market Value or After Repair Value (ARV)

-

Selling Costs

-

Repair Costs

-

Our Profit Margin

=

Your Cash Offer

market value of house

Market Value

The first step in our formula is understanding what your home could sell for if it were fully updated. This is called the Projected Market Value, also known in real estate as After Repair Value (ARV).
‍
We determine this number by looking at:
  • Recent sales of comparable homes nearby ("comps")
  • Similar square footage, layout, and structure
  • Renovation level (basic vs. high-end finishes)
  • Local market trends and neighbourhood value
This gives us a realistic, data-backed estimate of your home’s future resale value and becomes the foundation of your cash offer.

Repair Costs

We buy homes as-is. However, if a home needs updates or repairs, we factor those costs into the offer. Our estimates are based on real contractor rates and actual repair needs, such as:
  • Roofing, plumbing, or HVAC repairs
  • Painting, flooring, or cosmetic updates
  • Kitchen/bathroom renovations, if needed
We’re transparent and fair. You’ll see exactly how we estimate these costs.
two persons repairing house room
selling cost during the sale of house for cash

Selling Costs

When we buy your property, you don’t pay any commissions, cleaning fees, or typical seller expenses. However, when we sell the home after renovation, there are costs involved that impact the offer.

These include:
  • Real estate agent commissions (typically 6%)
  • Closing costs (usually about 2%)
Together, these add up to roughly 8% of the sale price. We subtract this amount from the After Repair Value (ARV) to keep our offers fair and realistic.

Our Margin

Yes, we do include a profit margin in our offer, but we do it the right way.

Our margin typically represents about 10% of the final resale value. This isn’t about squeezing sellers, it’s what allows us to:
  • Take on the financial risk
  • Cover holding costs, insurance, utilities, and unexpected repairs
  • Pay our team and contractors
  • Even give back to the community through charitable initiatives
We’re proud to be upfront about our business model. We only make offers that make sense for you, too.
profit while buying house for cash

Example Calculation

Let’s walk through a simple example to show how this all comes together.
123 Main Street – Chattanooga, TN
Let’s say this home, after being renovated, could sell for $200,000.

Element

Amount

Projected Market Value

$200,000

– Selling Costs (8%)

– $16,000

– Repairs(Estimated)

– $25,000

– Our Margin

– $25,000

= Your Cash Offer

$149,000

So if Zillow says the home’s worth $200K, that’s after it’s all fixed up. If your home needs work, those costs come out of the equation. That’s why cash offers sometimes feel lower, but it’s just real math, not a lowball.

Rental Offer Formula

When a property is already rented or ideal as a rental, we use a different method to calculate our offer. Instead of resale value, we focus on rental income.
We use what’s called the 1% Rule, a common rule of thumb in real estate investing:
Monthly Rent ÷ 1% = Target Purchase Price
Or, Monthly Rent ÷ 0.01 = Target Purchase Price
Or, Monthly Rent × 100 = Target Purchase Price
couples looking at new rental home
Example:
  • Property: Duplex
  • Rent: $1,000 per side = $2,000 total per month
  • Formula: $2,000 × 0.01 = $200,000 Offer (Before Repairs)
If the property needs work to reach full rental value, we subtract repair costs just like we do with flips:
Adjusted Offer Calculation:
  • Market Rent Total: $2,000/month
  • Target Price (1% Rule): $200,000
  • Estimated Repairs: $40,000
  • Final Offer: $160,000
This method ensures that our offers make sense based on the income potential of your property, not just its resale value. If you're already renting it out, we'll work with your current lease situation and explore what’s best for you.

What Makes Us Different

Full Transparency, Always

We explain every number in your offer so you understand exactly how we reached it.

Flexible, Goal-Based Offers

Our offers are tailored to your situation, not based on a rigid cash-only formula.

You Don’t Lift a Finger

We handle repairs, cleaning, and closing, so you can skip the hassle and walk away.

We Use Real Numbers, Not Guesswork

We calculate offers using local comps and actual costs, not lowballing or generic estimates.

Purpose-Driven, People-First Business

We donate part of our profits annually to fund safe housing through Homes for Homes.

Local Buyers Who Truly Care

We’re based in the communities we serve, no call centers or out-of-state buying teams.

Ready to Calculate your Cash Offer?

Curious how much your home could be worth? Fill out the form below, and we will calculate your fair cash offer quickly.

There’s no obligation, just a simple way to see what your home is worth.

Get Your Free Cash Offer Today

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FAQs

How Long Does It Take to Receive a Cash Offer After Submitting the Form?

We typically review your information and provide a cash offer within 1 day.

Are There Any Fees or Costs Involved When I Accept Your Cash Offer?

There are no hidden fees or commissions when you sell your home to us.

Can I Sell My House If It Has Tenants or Existing Lease Agreements?

Yes, we work with rental properties and can handle situations involving tenants and leases.

Do I Need to Make Any Repairs Before Selling to You?

No, we buy homes as-is, so you don’t have to spend money on repairs or cleaning.

How Do You Handle Properties with Liens or Outstanding Debts?

We evaluate each property individually and can assist in managing liens or debts during the sale.

Can I Negotiate the Offer You Provide?

We are transparent about our calculations but are open to discussing your specific situation to find a fair solution.

What Types of Properties Do You Buy?

We purchase single-family homes, duplexes, quadplexes, and other residential properties in various conditions.

How Do You Determine Repair Costs If I Don’t Provide Access to the Property?

We use professional estimates, market data, and sometimes schedule a walkthrough to assess repair needs accurately.

What Happens If the Market Conditions Change After You Make an Offer?

Our offers are based on current market data, but we communicate openly if conditions change before closing.

Is Your Cash Offer Binding?

Once you accept the offer and complete the sale process, it is binding. You are under no obligation until then.

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