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Updated over 4 years ago, 05/07/2020

User Stats

27
Posts
12
Votes
Alan Crookham
  • Flipper/Rehabber
  • Dubois, PA
12
Votes |
27
Posts

How to estimate with wildly different comps

Alan Crookham
  • Flipper/Rehabber
  • Dubois, PA
Posted

This is probably going to sound like a fake scenario, but this is the real deal! I live in a fairly small town in PA of about 10k people. I am planning to do my first house flip as soon as I finish setting up my newest rental (which will be my second, so I’m a newby still).

I found a neighborhood I really like, and started researching recently sold houses on Realtor.com, and there are three in the neighborhood. Same neighborhood, fairly similar houses, but the sale prices are 40k, 80k, and 175k. All on the same street. I do know that the 40k house needed a new roof, but that is still a massive price difference. How would I conservatively work out the comps in a situation like this?

Thanks!

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