Investment Prop with low ARV

[LaKia Williams]

Hi everyone. I'm new to investing. I want to purchase a property in an area that is at the beginning stages of gentrification. Right now the ARV of the property would not be comparable to the repairs needed. Would you still purchase and renovate the property knowing the value would increase over years vs immediately?

[Frank Hinck]

@LaKia Williams

A lot of people invest the way you're thinking, going for Appreciation instead of drawing cash flow out. I would still make sure the property appraises for the amount you buy for + the renovation amount, and you wouldn't want the property to only break even - you would still want cash flow so you can put some $ away for repairs, vacancy, CapEx.