I am looking at a townhome that needs a bit of TLC. The wholesaler is offering a little bit over 55k that needs about 5k in repairs. He suggested $77k ARV. I've looked at comparable properties with the same sqft, bdrm, bathroom. The numbers are:
#1 $52,000 DOM: 2 days
#2 $55,000 DOM: 12 days
#3 $70,000 DOM: 11 days
#4 $79,000 DOM: 66 days
#5* $87,500 DOM: 10 days
*The first 4 are from same subdivision.
How would you figure out what the ARV would be from those numbers?
If I were to do a cash-refinance, how can I prove to the bank that it's at least $77k after repairs.
I would say it is going to depend on what the condition of those homes are...and I would definitely look at the first four comps over the last one in a different sub. Look at the finishes for number 3 & 4 and plan on being on the same level of those. Location of the unit, views, etc. will also play a factor. In my experience, the bank will make their own assessment of value - so you need to feel comfortable that the comps speak for themselves.
@Jonna Weber Thanks! I didn't think about the location and view of the units. #3-4 are a bit more up to date.
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