@Tiffany Watkins, easier to input those numbers into a calculator, there should be a deal analyzer right here in BP tools or you can PM me for a deal analyzer, also, add only that which truly adds value in the marketplace it is in, for example, if it lacks a garage in a neighborhood where a garage is expected, definitely the garage would add value.

Basically, it's the body mass index of real estate investing: easy to calculate, but not providing much real insight.That said, the best explanation I've seen so far is here: https://www.biggerpockets.com/...

There is ratio equation that calculates the bill for tenants based off of occupancy and square footage.

It's a reference and a data point, but it is a pixel and not a picture.Condition is also a major factor; we get typically 200 to 300 more than calculated, because the condition is nicer than average and people are willing to pay for that.PM's are often a bit on the low conservative side, understandably, they don't want to overpromise, also it makes it a bit harder to find a great tenant.Size is another major factor; tenants are very much shopping for square footage.

How to calculate fair market value.  

My biggest question is how do you typically get a sense of the ARV for BRRRR when predicting how much all-in to calculate the proper LTV?

Hi Frank,I appreciate your reply.Im mostly confused why or how the seller justifies this property a 50/50 residential/commercial to calculate expenses. 12 pads and 1 house. 

While one would need to review legislative/regulatory history to really understand the "why" one can deduce that it comes down to the fact that rules are different (e.g. rules for calculating 5-year "clock" for qualified distributions, etc).

After watching several BP Youtube videos and BP Webinars, I have, to date, analyzed (using the BP calculator) about 25 properties. 

Personally, looking at the prices of house sold within the last year, I would say the value of the house would be between 240-260k.I am looking at offering ~ 20% below asking price around 200k and I am hoping to go as high as 220 to 230k.Calculating with a possible purchase at 230k:Looking at the numbers using the BP rental calculator, I could rent out the 3 rooms for 700 for both bedrooms with shared bathroom and the 1 bedroom with private bathroom for 800.