All Forum Posts by: Mick Murray

Thank you @Larry Turowski and @Gene Hacker!  Very helpful.

Looking to purchase our first BRRRR. There are multiple distressed properties in the area I want to purchase, but I don't want to wear out my contractor in getting bids in order to calculate ARV to make an offer. I'd like to be able to eyeball and estimate reno costs, make an offer, and then get the reno bids in the option period. But I don't know where to start to estimate reno costs.

Any tools you'd recommend?  Standard multipliers?  Rules of thumb?

Thanks

Thanks @Leo R.... again, that affirms my intuitions.  Interesting time to try to break into this space!

@Caleb Brown and @Jared Sandler

That's great... confirms my suspicions that the comps of June/July alone are not enough to substantiate price/sf now.  Need to look at true comps within last 45-90 days, and/or discount older comps relative to market shifts.  Very helpful, appreciate it!

Thanks for the reply, @Jared Sandler.  

The purpose for the question now is to determine the purchase price. We're looking at several properties, and to calculate the ARV we're looking at comps from the last 6 months. I hear in your initial thoughts that appraisers will still be obligated to look at comps in that time period? That they won't only look at comps from the past, say, 45 days (since rates have really started to cool the market)?

We'll be refinancing through a local bank, and my lender said they will order a drive-by appraisal to determine value after the reno.  

Appreciate any additional insights.

My wife and I are just about to pull the trigger on our first BRRRR. I'm hesitant to use comps from this summer, however, to calculate ARV as that timeframe represents a different landscape in the home buying market. Now that things are cooling off as interest rates rise, any tips on how to calculate ARV? Specifically how to anticipate appraisal value post-reno with far fewer comps?

Thanks!

Thank you Eliott

Thank you @Andrew Postell @Andrew Syrios and @Kevin Sobilo!

Looking to pull the trigger on my first purchase, and BRRRR appears to be the best strategy for our situation. But I'm running into roadblocks in terms of the financing on the back end and the numbers still making sense. Quotes of mid-high 7s and 2-3pts to originate.

Any input would be greatly appreciated!

@Dan White and @Ron Brady thank you!