Machine Learning to predict comps

[Johann Villalvir]

Hey looking for other data nerds here. I built an AI app that uses ML to predict a home's ARV using other properties in the area that have been flipped. So far, this approach has saved my team so much time when sourcing on market deals. It almost feels like a cheat code for REI. Has anyone tried this approach before? What are the downsides?

[Chris Seveney]

Quote from @Johann Villalvir:

Hey looking for other data nerds here. I built an AI app that uses ML to predict a home's ARV using other properties in the area that have been flipped. So far, this approach has saved my team so much time when sourcing on market deals. It almost feels like a cheat code for REI. Has anyone tried this approach before? What are the downsides?

With any software, it comes down to garbage in garbage out. What I mean by that is how accurate is the information that is being presented. There are other softwares out there that allow you to get comps for the ARV of the property.

Ask any realtor and they can give you the list of things to consider when using comps. 

Personally I look at that as the easy side of putting value to a BRRR or fix and flips. The challenge is knowing how to scope out the renovations properly and understand your construction costs.