Running comps in C / D neighborhoods
My goal is to do two BRRRR's this year. I've got one cash flowing property, but all of our capital is tied up in it. I think I'm going to refi it so we have some fluid cash to go along with a HML for the next property.
As of right now I’m pretty set on a specific part of town going forward. I’m currently looking at buying duplexes or triplexes for $25k-$60k, rehabbing what needs to be rehabbed and refinancing. I’m confident I can find decent renters and I know what the rent is. When I run the numbers for the properties I’m looking at, they always come back as cash flowing. That part isn’t a concern.
My question is, how can I run comps if most of the recent sold properties aren't freshly renovated like mine will hopefully be? I'm concerned about not being able to pull money back out to pay off the HML if the comps don't come back where I need them to.
What’s a good book or two to teach me about running comps for this situation?
While chatting with other investors / bankers in my area, I’ve gotten feedback to look at a bit better neighborhoods. The cash flow on the properties I’m looking at is too enticing.
I think the neighborhoods I’m looking at are stable enough, but I probably won’t get the appreciation like in better neighborhoods.
Lots of thoughts and questions there... thanks for any input.