Do you walk away if ?

[Simon Obas]

Do you walk away if there are no direct comps? I am looking at a duplex and the comps are ranging from $250k-$320k. I got comps from three different agents and they’re all different. What do I do? My interest is to brrrr. PP is $170k. $30k rehab!

[Mitch Messer]

Hey @Simon Obas, since your intent is to rent for cash flow, the comps are not nearly as concerning as if you were planning to fix and flip. Even if you only consider the lowest comp ($250K), you're still all in with a full $50K equity to spare!

The bigger question is what do your cash flow and cash-on-cash return numbers look like and do they make sense?

If your financials are solid, and if there truly aren't better comps, then I wouldn't sweat it!