There are probably many posts that contain similar information to this one, but I thought it would be of value to future and existing investors who are starting their journey.

We recently completed rehabbing a duplex we bought for $93k and rehabbed for $75k (in retrospect, we could've negotiated a lower price 🤷‍♂️ - discussion for a different post), hitting an ARV of $190k when our target ARV was $170k.

Two things that stood out for me that helped us secure a higher ARV that anyone can use in their next BRRRR were:

1) Fix the property to be in the top 75th percentile -> To improve our success rate, we consulted with both our agent and our PMC on what kind of materials and finishes the best properties (highest ARV Comps and Rent Rates) had in the area. This gave us a clear idea of all the details we needed to know in terms of paint color, floor, and other key fixes such as windows, doors, and cabinets. By using our agent and PMC as a resource we delivered a product that stands at the top of the market in the area, thus helping us secure our target rents and attract the best tenants for that area.

2) Leveraging the Comps -> Using the comps report our agent sent us as a reference for the appraisal. Luckily, I spoke to my mentor before the appraisal, and told me "you know that you need to send the comps to the appraiser, right?" - it never crossed my mind, but I'm glad I learned that through success and not by missing the opportunity. Anyways, the appraiser used two of the properties that were within the comps report (the higher ones) and we managed to overperform our ARV target by $20k.

Lesson Learned -> Later we realized that the appraiser also looked at the rental comps, and the average rent used in the income approach was $2,000...we are renting both units for $2,600 and the average rent in general for this kind of duplex in the area is $2,100 - $2,200, so we could've easily hit a higher ARV, crazy right?

"Get to the Point, what's your CoC return?"
So all in all, we will be hitting a CoC of ~15% despite overpaying in the purchase and not getting a higher ARV through the income approach.

Hope this helps! 💪