BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 4 years ago,
Figuring out a subject property's ARV
I have a question regarding finding out or best estimating a property's ARV. After reading many posts and watching some videos it seems I get the same answer. Best way to get an agent to find the best comps and take the average of the closes three, or use some online realtor site and get comps from there. I understand the process of finding properties that best match your subject properties attributes such as Sq. footage, bed and bathrooms, garage space and other amenities but the problem I'm facing is that in the neighborhood I want to invest in I can't find any SFH that have been sold recently that have been renovated like I want to do. The neighboring houses are in good condition. I am gonna do a whole house remodel new paint, refinish the wood floors, and really focus on the kitchen and bathrooms. It already has a newer roof, electric and HVAC system. Realistically how much value will I get out of making these renovations? What is the cost vs return value on a remodel? I know there is a point where there will be diminishing returns but every rental property I buy want it to be as if I was gonna live there, is that unrealistic? I am not asking cause I want to flip right away I want to buy and hold and then implement the BRRRR strategy and want to get the best possible ARV. Sorry for the long winded question but any feedback will be appreciated.