Hello, my name is Daniel Wendorf.i have been looking to get into SFH but i guess im having a hard time finding out the ARV for some of these homes based on local comparisons. it seems that there is a big fluctuation is the cost of these homes. one will sell for 120k with 4b 2bath, but a couple blocks away they will sell for 50k. how do i go about getting a more accurate number?
@Daniel Wendorf - are you concerned about the ARV because you're looking to BRRRR or are you looking to flip?
@pete woelfel for BRRRR
Practice. Determining ARV is an art and a science - you definitley get better with practice and tools. Most agents struggle with it and get so-so results. In the area you are describing you have to understand the deviding lines; you can't cross those.
Also, from my own experience: BRRRR generally works better on medium priced homes, because you have a larger spread. That spread gets divided up into your profit and your expenses. Your expenses are NOT a function of home value. A water heater for a cheap house costs exactly the same as for a house double or trippple the price.
Hey Daniel! Welcome to BiggerPockets!
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Best of luck,
Did you look at the photos of the homes to see if they compare? Some were probably complete rehabs whereas the lower ones may be distressed or as is sales.
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