Appraisal Question / ARV Question

[Richard E.]

Hi All,

I am looking to do a BRRRR in a market that I am not very familiar with (Actually not familiar with at all). The person I am doing it with brings alot of value and they have resources in that market that will make this cool (Sober living).

Comps are an issue though, because there are really no comps of similar properties. This is a 5/2 ,but it is only 2300 sf, whereas most of the 5s in the area are 3200-4k+. This is more the size of 3/2s. 

So here is the question: When evaluating ARV, if we have a 3 bed and a 5 bed of similar size, build, condition etc, how much value do we give to the extra bedrooms for the 5 bed, when the square footage is the same as the 3 bed?

I've seen articles with arbitrary numbers like 10, 20k. Anyone have any ideas? Thanks,