I would imagine eventually it all comes to the specifics of the property itself but then the search is becoming to exhaustive, so I would want to focus on couple geographical areas and be able to search there.Currently I'm in CA and looking to invest in other states.Any idea on how to get started and get focused on an area would be appreciated.Thanks in advace to all the comments.

I'll sit at my little desk and make my little loans smiling and having fun every day.Thanks for the explanation.

@Bryan DevittThank you for the detailed explanation, now I have a better idea of what I am dealing with. 

I don't self manage, but I have to consider what my PM is required to do2b using separate geographic locations doesn't help as it then reduces my economies of scale and my specific expertise.

Find comps that: have sold within the previous 3-6 months;are within the neighborhood geographic boundaries;have similar features;are approximately the same square footageRemember that the condition of the comps needs to reflect what the potential subject property will look like after rehab.I wrote a biggerpockets blog post on how to find comps and calculate ARV which may be helpful:https://www.biggerpockets.com/blogs/8814/68395-how-to-find-real-estate-comps-and-calculate-after-repair-valueReach out if I can help with anything.

@Michael Plaks Thank you for the detailed explanation, truly appreciated!

Hi John Leavelle , thank you for that explanation.

John Craven When it comes to real estate in taxes, industry specialization trumps geographic proximity any day.

I recommend you search the 70% rule and read those explanations.

Or maybe even get another accountant's input.Sorry for not doing this for you right here, but I would need to type up couple pages of explanations to respond to your most recent post.