No Comps - How do I get an ARV?

[Adrienne Donner]

I found a great triplex with lots of potential but my realtor can find no sales comps within the last year in the area. It is in a section of the city that is separated from the rest. 

How will an appraiser evaluate the value in such a case? How can I analyze the ARV to know if I should move forward on this.

I called my insurance agent to get a quote and he suggest the rebuild value at $67K more than asking. But I'm estimating about $60 in reno. Even on the low end of rental rates it seems promising.

First deal rookie here. Your advice is much appreciated!!

[Cameron Tope]

@Adrienne Donner I agree with @Mike Cumbie - there are always comps!

Since this is your first deal I would say you may want to walk away. When there are no comps (especially coming from your realtor) that means you have no idea what the ARV will be. It could be higher than expected but most likely it will be lower than expected as banks will always error on the side of caution.

If you're really set on this deal then pay the ~$500 to get an appraisal or chat with a hard money lender (or whoever you're getting your financing through) and they may be able to tell you what they think. 

Best of luck!