Finding comps for multi-family 203k loan

[Jake Collins]

Hi everyone,

I am a new investor looking to jump right in by getting a 203k loan and rehabbing my first property and future primary residence. I'm in a lease for about six more months and have found a property in an area I like that has two garage apartment units in the back with a main home in front. The garage apartments in the back are in great shape, but the house has no interior pictures and is in original condition from the 30s or 40s. So, I'm expecting a large rehab. I spoke with a lender today and she mentioned an appraisal will have to be done as part of the FHA 203k loan process (where I'm getting the money for the rehab) to determine the ARV. I think fixed up, the house will look great and will cash flow with the two garage apartments while I live there, followed by great cash flow after moving out. All this begs the question, how can I find comps for a 3-unit like this and how can I differentiate ARV estimates vs comps in current condition? I'm in the Houston, TX area and there are nice fixed up properties in a (nicer) area on the other side of downtown, but not a ton right where I am looking to buy. How are comps done for multi-family and what can I expect the appraiser to be looking at?

Thanks BP! Really hoping to make this my first deal if the bones are good!