Seeking Advice/Help on Determining ARV

[Kwok Wong]

Aloha, I am a new investor trying to determine the ARV of a fixer-upper and looking to BRRRR the property out-of-state.
The URL attached is a CMA Summary Report with on all recently sold properties, active listing, and pending sales as well as my comments/through process.

I followed a three-tiered system to determine the ARV:

T1: Stay within one-miles radius, sold for fewer than six-months.
T2: Size of the properties are within 200 sqft., must share certain attributes (bedrooms, bathroom, etc.).
T3: Compare property type

I came to the result of above 200k and am looking for advice/comments from experienced investors on my decision. Did I miss anything? Also, what is the purpose of "pending sales" when determine ARVs?

Additional comment will be greatly appreciated. Thank you in advance for any input.


Mahalo Nui Loa.

[Greg Kasmer]

Quote from @Kwok Wong:

Aloha, I am a new investor trying to determine the ARV of a fixer-upper and looking to BRRRR the property out-of-state.
The URL attached is a CMA Summary Report with on all recently sold properties, active listing, and pending sales as well as my comments/through process.

I followed a three-tiered system to determine the ARV:

T1: Stay within one-miles radius, sold for fewer than six-months.
T2: Size of the properties are within 200 sqft., must share certain attributes (bedrooms, bathroom, etc.).
T3: Compare property type

I came to the result of above 200k and am looking for advice/comments from experienced investors on my decision. Did I miss anything? Also, what is the purpose of "pending sales" when determine ARVs?

Additional comment will be greatly appreciated. Thank you in advance for any input.


Mahalo Nui Loa.

 Kwok - I think your approach is sound. However, in most appraisals I've seen there is more than 2 comparables used, at least 3-4 in my opinion. So, I would suggest using some of the other comps that you have listed and see if you would get a different perspective. Also, one of the biggest factors in looking at comparables is the finishes of the properties. Did you look at photos of the comparables? Did they use granite or quartz countertops, stainless steel appliance, etc... From my perspective the type of finishes between your property (when it's rehabbed) and comparable properties could swing 5-10% if there is a substantial difference in finishes. Good Luck!