How Comps Work Exactly

[Nicholas Duffus]

Hello BP community. I have been spending some more time researching BRRRR and I have a pretty good grasp on the idea and the steps to be taken. One thing that has come to mind while researching is how comps are done. I understand that comparing homes that share likeness with the prospective property is the basic ideology.

However, when doing comps does the location of the comp matter? For example, if a property is in a desirable location in one county, but your comps come from another desirable location in another county; or just another town over, would this drastically impact your potential ARV?

Thank you ahead of time! I will be sure to reply.

Nick