I'm trying to estimate the ARV of a duplex I'm looking to buy and having a hard time finding comps. I have looked as far back as the past year and there just are not a lot of duplexes in this market. How does everyone estimate their ARV when they are having a hard time finding similar properties to compare to? The house needs some serious updating to the 21st century but doesn't seem to need any major repairs. Currently 1 unit rented and 1 vacant with records of rent payment. Separate meters and separate HVAC units. Thanks in advance for any advice!
This is the tough part when evaluating a deal if you are not seeing comps. Option #1- Ask a real estate agent to pull comps and see if they can find something maybe you are not seeing. Option #2 hire an appraiser to give you some comps. Option #3 Do an evaluation on the property and see what the rate of return will be as an investment. See what the value would be at a 6% cap rate, a 7% cap rate, and an 8% cap rate, and then determine the value of the property. I hope this helps.
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