When A Rehabs Comps Need Rehabbing

[Benjamin DeBell]

I'm curious if anyone has ever dealt with this issue. I have a neighborhood that contains some 1970 and early 80s homes. The hard part is that I would be one of the first to really renovate a house in this neighborhood. The comps are showing an average of $93/sq. ft. but I believe with improvements, it could sell for $120/sq. ft. All of the comps are recently sales, but they haven't been updated. 

I would love to hear some strategies on how you evaluate a deal like this. I just would hate to get it under contract and the appraisal come back at $92/sq. ft.