How to value a property and math involved

2 Replies

When using the BRRR method, I am interested in how everyone - sizes up, "does the math" to see if a property is a good investment. Aside from the obvious buy low, sell high etc. I'm wanting more details as to when potentially finding something. Sure, buy at 100k, put 25k in it, appraise at 180,000, refinance and off to the next. Is this as easy as comparing to other homes in the area that are renovated? Would love other inputs..

Thanks,  

@Jesse Kerr , yes, "as easy as comparing to other homes in the area that are renovated"!

ie. Find out what sold comps (ARV) are before submitting offers, and work backwards from there!

ie. Your all-in cost is aimed at being no more than 70-75%* ARV! Simple, right? Cheers...

* [Depending on how good your relationship is with your refinancing Lender!]

[And yes, you need to have calculated that it would still positively cash flow, even when 100% leveraged.]

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