BiggerPockets

You should have found your ARV before you purchased, but getting a realtor to pull sold houses within the last 6 months in that neighborhood will do it.

AdamB just told you. I'm curious too how you didn't know the ARV prior to buying the property. Get your agent to pull all the comps for you to see what everything else has been selling for.
Do you have an estimate for the rehab? Who is doing that?

Here's how to buy a house:

1. After you get the appointment with the seller to look at the house, pull the property record card (tax record) to see the specifics of the house.

2. Pull the comps. You want like area, size, style, year built, etc. Do not use REO's, F/C's, discount sales. You want retail sales in good shape. Possibly even renovations of the same style home you are looking at.

3. Drive by the subject 30 minutes before the appointment to get a feel for what you are looking at. Then drive the comps. Pick three of the best comps that are in good shape compared to your subject.

4. Average the $ per square foot of the comps and use that average to determine the ARV of your subject.

5. BEFORE YOU EVER MEET THE SELLER OR SEE THE HOUSE YOU SHOULD ALREADY KNOW WHAT THE ARV IS.

6. Meet with the seller. Remember this: "It's not the house. It's the seller". If you can't bond and rapport with the seller, you will never buy the house.

7. Determine repairs.

8. Multiply the discount you are going to make on the house. Then subtract the repairs. i.e. $100K - 50% - $20K = $30K.

9. Make your offer to the seller.

I hope this helps and I am sorry you did not know this prior to buying the house.

Okay thanks everyone for the reply. I talked to my realtor about market analysis in that neighborhood she said between 35k and 70k Almost all the homes there are Flat roof. This house is different though its hard to compare to she said. Its two homes in one lot. I will do repair estimates i am really worried about the flat roof I will be getting estimates on all the repair I would love a pitched roof

I second J's statement... you need a closer approximation of resale value.

Assuming your Realtor (Realtor. Not Realator.) is right about the value being 35k, you may be in a world of hurt at 12k. Windows, HVAC, roof, cabinets, flooring, bathroom rehab, etc. can all add up to $30k+ in a big hurry.

If you haven't already closed, pay a General Contractor to come take a look and give you a bid... also find a competent Realtor or Appraiser and pay them to give you a closer number for the ARV.

Then you'll have a better idea if you want to close or not.

I use 100% of my info from the MLS. Nothing less, nothing more. If you haven't already, develop a relationship with a realtor. You're going to run into some who don't understand the business, and you'll run into a few who will. They can be a very large asset to your team.

Danny