Best way to find accurate comps

[Matt Doubell]

Hi currently I'm working on starting my real estate journey and and I am extremely interested in doing BRRRR deals. I have a large background in rehabbing both as a contractor and now an engineering working with contractors often. Due to my technical background I very much enjoy fixing up houses. From a rehab standpoint I would say I'm very comfortable giving accurate estimates for the overall cost to rehab. But an area where I'm not near as comfortable is estimating the ARV. My initial thought process is that comps are the best way of estimating an ARV. Is there flaws in this way thinking? Also what are the best ways to ensure accurate comps and accurate ARV estimates? I would appreciate anything y'all could share to help me keep moving in the right direction. Thanks for your time

[Kenneth Garrett]

@Matt Doubell

You can run comps yourself or use a broker and they can run a CMA (comparative market analysis). I use Redfin and Zillow to run comps. You have to project what improvements you are going to make and compare updated properties based on your rehab. A 3/2 ranch of 1200 square feet, garage, basement, age, etc. Compare similar comps in the same neighborhood is best. If you can find the same model in the same subdivision that's an easy way to get comps. If that's not your case start with comps within 1/2 mile and keep expanding further out if necessary. Keep in mind if you cross a major street it might put you in a different area with different comps, different school district, different city, etc. Remember to add and subtract based on the comp; basement v crawl, garage v no garage, 1 car garage v 2 car, detached v attached.

I use a spread sheet for comps.  I want at least 3 comps, but the more the better.