Is it a good deal? Adjust your comps for a more accurate ARV

[Kuba F.]

Hey Everyone,

Kuba Fietkiewicz here, founder of real estate investment software REIkit.com based out of Los Angeles.

Here on Biggerpockets you see questions from the community such as, "what is the biggest mistake you've ever made in investing?” People want to know what actions they can take to not make the same mistakes.

On my first flip, which was a complete disaster, there were a number of events that went wrong that I could have foreseen. As a matter of fact, when I look back on it today, I can clearly see that I never should have purchased the property in the first place.

One of the main reasons why the flip failed is because, when calculating the ARV of the property I wanted to buy, I did not adjust my comps for features.

Features can be bedrooms, bathrooms, garages, pools, and so on, and in order to get the most accurate ARV you must account for differences between the comps and the subject property.

If I had taken just an extra 30 minutes to compare the features, I would have discovered that my property just didn't have features that all of the other comps did, erasing $10,000 dollars of my expected profit.

My frustrated experiences led me to create REIkit.com. One of the first tools I built is a free ARV calculator, and a comps adjustment tool, to help others avoid the same outcome.

Do you have 30 minutes to avoid a nightmare flip? 

The free ARV Calculator and Comps Adjustment tools on the site should be a part of your daily due diligence on potential properties.

Click here to try it out: https://tools.reikit.com/comps

Any questions or feedback, I'd love to hear it in the comments below or chat on the site.

Cheers!

Kuba