Best Ways to try and Calculate ARV

[Anthony Venezia]

Hello! I write this as a newbie who has just 1 rental so far. As I've been analyzing more deals lately to look for my 2nd deal, I've consistently had the toughest time estimating ARV.

I do have comps pulled for me to give me the best idea possible, but sometimes the comps fall within a 20-50k range depending on varying factors. I understand a range that wide can make the deal riskier with just not knowing where the ARV could really fall.

With that said, I’ve recently been using all the relevant comps (about 4-8 comps) to get an average price per square foot. I will then multiply that average by the price/sq ft in the subject property. I’m curious to get others thoughts on this method and any potential downfalls I could be missing. Also any other strategies to use that could be more accurate. Thanks for your time!