Estimating ARV with limited comps

1 Reply

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. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you