Comps when analyzing rental property?

[Nick Brown]

Do I care about comps when analyzing a rental property for cash flow? Other than determining the ARV to see how much built-in-equity I have, do I really care about comps on a longer-term buy and hold cashflow play?

Thanks!

[Kuba F.]

If you care about pulling that equity out at some point you might care. If you want to know what kind of refinance options you have.  Comps give you an idea of the level of finish required to justify your desired rents.  Not taking current value and appreciation into account is an incomplete picture of a deal and limits possible exits if needed later.