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Updated almost 5 years ago,
How to get an ARV on apartment complex
Hi everybody,
I am looking at a distressed apartment complex in a small town of about 8000. I just came across this late last night. No big cities surrounding the area either. It does have a Junior College in town.
The building needs work. Listed for 55k. It has 3, 1 BR-1 Bath, apartments “rent ready”. Two other spaces framed and dry walled that can be turned into two more with enough work. Plus a garage for storage. It is the only apartment complex in the neighborhood. The houses in the area all list from a peak of 95k to a low of 30k. It’s not a bad neighborhood but old, small houses.
How do I get a quick, fairly accurate, ARV to take to my investor for an idea on whether this is a deal worth looking into? When I do the rental calc on here I can crunch all the numbers with confidence except for repair cost and ARV. On the webinar on evaluating a property, those were two topics seemed more like a guess based on experience, without any real facts besides ask a realtor. How far out of the neighborhood can I go to get a good comp? Without any other similar properties within a mile, do I compare it to houses around the neighborhood?
I live three hours away but I am from the area and have lots of family. A relative would manage the property. I have reached out to a few agents last night and am waiting feedback but so far none of them had the answers I was looking for off the top of their head. Hopefully I’ll hear more today.
I just wanted to see what BP insight had to offer. And frankly, when I get on a target I am impatient lol. Any advice is appreciated.