Updated over 10 years ago on .
Run The Comps to evaluate a deal before buying
How can you tell if a deal is really a deal? Its good to know what other homes in the area have sold for. Often, you will be able to determine your ARV when you Run The Comps, and did you know that if you are in the Dallas Ft Worth market, there is an app for that?
Once you have established an After Repaired Value, then apply your percentage formula (generally anywhere from 60-80%) and then figure in your repairs. This will tell you how much you should be paying for the property. Of course, there may be other factors to consider such as your cash position and exit strategy, but the idea is to have good basic knowledge of values and sold comps in the subject property's neighborhood in order to make a good buying decision.