Getting ARV Without Renovated Comparables

[Isaac Fridmann]

Hey BP Fam,

When looking at a potential fix and flip deal, If the comps in the area aren't renovated/updated, does it automatically mean it's not worth getting into? I've heard mixed views on whether or not you should only buy a fixer upper if the comps in the area are also flips.

Would appreciate any input you can provide.

Thanks!

[Marc Izquierdo]

Ideally, you don't want to over improve. If nothing that has sold has been updated, then I'm assuming they've at least been clean with maybe some fresh paint and new carpet? Sounds like, if you can get it for a good price, there wouldn't be much to do to get it to sell for top market prices. You could add some small upgrades to help it stand out from the competition when you sell but you definitely don't want to spend more money than you have to. I think you can flip anything in any market as long as you can get it for the right price. 

The other houses that have sold, did they have stuff like a newer roof, newer HVAC, newer hot water heater, etc? You could have an outdated looking house with all new/newer systems and mechanicals. Those might be the areas requiring improvement rather than the stuff we all traditionally think of like kitchens and baths.