However, that isn't how you should be looking for comparables).If, however, the reason you are finding few comps is that the subject property is in a sparsely populated area, or one with extremely few sales, then that is a tougher situation. 

In December 2018 I finally decided to pull the trigger and buy my first house.

In December 2018 I finally decided to pull the trigger and buy my first house.

The new regulations as well as extremely high prices are going to make it extremely difficult to be successful especially as a newbie.

I definitely do not look to discourage you at all I'm only speaking to the necessity of being extremely committed to thorough due diligence on these deals.Best, Ryan

The structure incurred "substantial structural damage" which triggered code upgrade requirements which rendered repairs in excess of the insurance policy, which rendered it a constructive total loss. 

Doug is a wealth of knowledge and has construction background, which is extremely helpful.

I've found dozens of great deals in the areas I already know (I love doing a regression analysis after a final sales price has been established merged with a prospective analysis on a project) - but before I pull the trigger on doing one myself, I know I have a bit to learn first.

Now that is an EXTREME circumstance and he got such a good deal on the property that he'll still make money when it's all said and done but if the bank or a HML gets burned by that once I promise they won't be lending on occupied properties again.As far as due-diligence goes the bank will need to deliver a clean and marketable title to you.

@Nicholas UrcuioliFirst of all you wouldn’t value a three unit building based on Cape Rate.Four units and under are considered residential and you would use the price comparison approach on an appraisal.Cap Rate is purely a measure of risk and never a measure of your actual cash on cash returns or future gross profitPlaces like San Francisco Los Angeles and Manhattan have way more renters (demand)  then there are vacant units (supply).This makes these markets extremely safe because the risk of the whole building becoming vacant is almost 0Markets with higher Rates like Ohio or Alabama must pay a higher return on investment because they are riskier markets with much higher vacancy rates and demand and Manhattan have way more renters parenthesedemand