All Forum Posts by: Jasmine Claye

So if i can only find 2 comps, would that not be enough to consider the deal, because not enough comps?

Is there an approximte # of recent sales needed to get a good ARV?

Thanks Jon,

So is it best to stay away from comps as the one above?
Also, if there are no good comps, how do I obtain the ARV? Best guess Value + repairs = Best guess for ARV?

The best I've seen is a yr 1940 home sold for: $100,000 in (07/08/11)
Beds: 3
Baths: 2
Sqft: 1,372

Home I need comps for is a yr 1950 home:
Beds: 3
Baths: 2
Sqft: 1263

These homes are .34 miles in distance

How do you get comps if there are no recent sales in the proximity one should look? Zillow provided sales from 2010-2011, which I know not to use as comps, but is there another site or method to use to obtain RECENT ACTUAL comps?

I understand I need comps to determine the ARV, after repairs, correct? But how do I determine the current value of the property, before repairs, without paying for an appraisal? Or does the comps prove the current value of the proerty, regardless of the repairs?

Tax assessment is $61203

But the Valuation range(high) in dollars is $19470
Valuation range(low) in dollars is $3520

Seller is asking $24990 for property.

What does the tax assessment value mean in relation to the valuation ranges, and what number should I use for valuating the property?

**Info found on title company's website.

Thanks

Great question Ned. I am taking notes on what questions to ask sellers to determine if there may be a deal or not.

The business debt is in the seller's home town of about $82,000.

1955 property in quiet residential area for sale
2 bed 1 bath 1065 sq ft

*Seller lives out of town, asking $105,000
but willing to negotiate to pay off business debt
owes $90,000 mortgage paying $605 monthly with 2 mortgages
currently renting out at 700/month

*Seller says POLARIS (online comps tool) says ARV in good condition is $125,000 (haven't done own comps)

*Seller says everything works and needed work is cosmetic at about $10,000 (havent done walk through)

MPP formula = 70% of ARV - rehab costs
= 70% (125,000) - 10,000
= $77,500

MPP = $77,500 and seller has $90,000 mortgage
(did not negotiate with seller but is deal worth negotiating based on MPP and remaining mortgage?)

What do you guys think?

I am not looking to get rich from this strategy, but I think it would be a way to obtain steady cash flow from a few units, IF they are all rented and if I hire a property manager to manage the property. Am I wrong to think this?