First-Time Investor Seeking BRRRR Advice for Small Multi-Family in Allentown/Philly

[Arthur Tolentino]

Hey BiggerPockets community! I'm new here and about to dive into my first real estate investment. I'm looking at purchasing a small multi-family rental property in the Allentown or Philadelphia area, and I plan to use the BRRRR strategy.

I'm struggling with the best way to analyze potential properties to ensure a solid ARV and would love any advice on effective tools or methods you use. Also, what are some of the most common value-adds that can significantly boost a property's ARV?

Appreciate any tips, insights, or experiences you can share to help guide me through this process!

[Shawn Ackerman]

Hi @Arthur Tolentino Congrats on getting things rolling. To find value on residential 1-4 unit properties you could ask your realtor to run comps or complete a CMA(Comparative Market Analysis) on a subject property once you find it.

or you can find the value on your own.

We use prop stream to run comps.  You want to look for like/kind SOLD properties to compare so, single family to single family and multi to multi (2-4).  You also want to look for these like/kind properties that have sold in the past 3-6 months within a .25 to 1 mile radius.

This comes with practice so the more you do the better you will become at it.  Finally, if you cannot find sold properties to compare within the timeframe or distance you can go out a bit to find properties to compare.

This will get you started with finding values for residential 1-4.  If your "small Multi" is a 5 unit or higher disregard everything I've written here LOL! you'd find those values a different way.

Best of luck!