ARV for a buy and hold rental question

[Kyle Curtin]

Hi everyone!

Quick question that I would love to hear your thoughts on. If you are househacking or just buying a rental with a decent amount of equity that can be forced in (B-, C+) property, is it wise to run comps to gauge how extensive to go with repairs and see roughly how much it will be worth after like a flip even though your plan may be to hold onto it?

Thank you so much,

Kyle

[Nathan Cross]

Originally posted by @Kyle Curtin:

Hi everyone!

Quick question that I would love to hear your thoughts on. If you are househacking or just buying a rental with a decent amount of equity that can be forced in (B-, C+) property, is it wise to run comps to gauge how extensive to go with repairs and see roughly how much it will be worth after like a flip even though your plan may be to hold onto it?

Hi Kyle.. I would look to see what CAPEX items need to be updated or replaced, so to not have issues on those items for a while. I would also look at things that can be done to upgrade the interior as well as "bullet proofing" the rental to tenants like LVP flooring in the house. And if the area comps all have solid surface counters, maybe you can find someone selling quarts for cheap.

I just look at putting the money into the investment upfront if possible, it will pay off in the long run. 

Thank you so much,

Kyle