The rental market here is hot...usually can rent out a good property in less than 7 days...that said I am looking at a potential investment that has 2 "cottages" old frame houses in a B neighborhood...they share well and septic and a common driveway...but electric is separate...

Mr Griffith a big cheese at TrustFCI had his tech guys work on the website and the monthly statement email that goes to lenders.  

For even more accuracy, we choose to only use comps that are 1/3 mile away or less, with sales dates within the last six months.Sometimes, even the street can make a difference in the value of a property.If the only comps you have are on very nice streets, but the house you’re considering is on a very “distressed” street, then you have to reduce the ARV.How much is an appropriate reduction is a judgment call on your part.You’ll want to base that call on how much of a discount will be necessary to entice the final owner/occupant to buy this property over one they can get on the “better” street.If the comparable sale that you are using is too different from the subject property, then it is of little value.If you use it in your sales marketing, you’ll lose credibility with your Investor Buyers.An example of a poor comparable is when your subject property is an old cottage fixer-upper, and you compare it to the sale of a brand new in-fill (an in-fill is a new house built on a vacant lot in an otherwise established neighborhood).Rehab dollars vary according to level and detail of the job – everyone has a different formula.As a wholesaler, we suggest a middle-of-the-road approach for estimating enough rehab dollars to get the subject property to look like the comps.You’ll need to spend more on rehab as the ARV increases.Logically,buyers like more ‘pretty-ness’, higher-end fixtures, cabinets, etc. when they’re paying $200,000 vs. when they’re only paying $100,000 for a house.Buy/Sell/Hold costs are all of the costs associated with:üThe purchase (loan origination fees, title insurance, attorney fees, survey, appraisals, etc);üThe sale (real estate agent commissions, marketing and advertising, closing costs paid by the Seller); and üHolding the property (mortgage interest, utilities, taxes, insurance, etc.).

The game has advanced and investors know that cookie cutter rehabs will have them losing money on the back end like a sinking ship taking on water.No one is buying cheese sandwiches when there are sandwiches that have dressings as well as other choices.

The cottage in the back is also on a slab at ground level, so it probably has the same problems.This room is also where the previous owners fed the feral cats -- we caught 29 of them.

As the Brits say, its like "chaulk and cheese".The "Dave Deldados and Russ Dalbys will get theirs, they are sophisticated fraud promoters.My advice, Read books, ask questions here on BP, you will do well.And it will take you a while, so be patient.

Plumber stated problem is outside of his expertise, since the only thing he noticed was a very MOIST crawl space underneath the cottage, all over, as if after a rain.

these homes are the province of local investors and free market. the market Is a cash market as the homes are not financeable  or hard to finance.ARV is a figment of the investors imagination as those homes generally will never sell for ARV.. its nice to think you have equity but they will only sell for what the market will pay for a given cash flow and in lower class areas with more homes than people the 2% rule is alive and well. this is all an educated local buyer will pay for those types of homes. there is no upside in rent or value in most instances... ( inner city turn arounds excluded)..in the land of 30 to 35k all in homes all around rural America or the D and C - class inner cities this is a cottage industry were many families do this for a living.. they own as others have posted 20 to 100's of these to multiple hundreds.. its not investing its a business... plain and simple.. with very little chance of an exit over what you paid for them..  

They RARELY actually get sold at auction, but it would give you target "motivated sellers" so that you are the one who intercepts it before auction.I'm willing to bet that driving through some of the cottage areas is a great way to "drive for dollars" - seek out the places that appear to be lacking maintenance.

One has a main home, 3k sq ft with a 1 bedroom cottage, a 2 bedroom cottage & an efficiency apt.