How to come up with the best after repair value

Member since 2018 · 5 posts · 0 votes

Hi guys I’m looking at a few homes and I’m still having trouble coming up with ARV to see if the property is worth investing. If you guys have any good strategies please feel free to post them thank you guys I’m also trying to come up with the best ARV number because I’m trying to get a hard money lender for the deals and I don’t want to waste anyone’s time.

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Kevin Dang
Specialist · Oakland, CA · Member since 2014 · 83 posts · 28 votes
8y
@Carlos Araujo you look at comps to similar properties
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Kevin Dang
Specialist · Oakland, CA · Member since 2014 · 83 posts · 28 votes
8y
Base on comps, you work backwards deducting cost of rehab and expenses. They would provide an estimate cost of the property you should look for
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Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Carlos Araujo I'd suggest working with a local Realtor. If you're not going to do any business with him, pay him for the work.
If you're going to list the finished home with him, he should do it at no cost.
There's more than meets the eye to running good comps and if you get it wrong, it can be a disaster, so I think it's worth getting it done right.
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Shawn Ward
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Carlos Araujo I agree with @Charlie MacPherson , get a local realtor who has a good reputation and get them to pull comps for you. Most will do , with the understanding, if you buy the home, you'll be able to have them sell it for you.
Also, to do a quick and dirty comp lookup, find homes with similar SQFT for home and lot, same beds and bath and that have been rehabbed...best to get within 1 mile radius and within the past year.
All the best!
sjw
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