Hi all, just wanted to start with a big thank you to all who contribute to this site. Before I found this site I wouldn't have expected to find myself in the situation i'm in. I have signed a purchase agreement for a house that will be my first fix and flip. I do have a question about ARV though. This property has a main house that is 2350 sq. ft. and a 2nd building on the property that is a mother in law suite. How does this second building get valued? If going rate for the area is $170 sq. ft. for the main house, can i expect this same price per sq. ft. for the mother in law suite even though the space is detached from the main house? Should I expect a lesser value? Thanks in advance.
The suite will generally be valued by the cost approach, look that up, then added to the estimated market value. The income approach may be used if the building could be leased in that neighborhood. The market approach which is the most weighted for a SFR would be very difficult finding other comps with other detached quarters. :)
Thanks Bill, I will do a little research and use that to value the building.
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