Percent of ARV for rental property

[Account Closed]

I've been looking at a rehab project for a 4 unit multi-family that I intended to hold. After looking at values of surrounding buildings in the area, I'm not sure the ARV is going to be as high as I expected. I was curious to see what percentage of ARV people typically looked for in such a property.

What I am looking at is a purchase of 45k, and rehab costs of roughly 80k. An identical building next to it was redone a few years ago as a single family and sold in 2008 for only 117k. I'm not sure of the extent of the work done on it. What do you all think?

[Brian Levredge]

Tax assessments are generally not accurate at all. In most markets the assessments are going to be high because they are based off of values that are several years old. Your best bet is to find "like,kind" sales in the area and use those for comps. I don't really view a single family that was converted from a multi as very similar. No matter what you do, be conservative. With interest rates pushing up, housing is going to decline even more.