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Nat Rojas
  • Rental Property Investor
  • Elkridge, MD
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115
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Steps for Determining ARV

Nat Rojas
  • Rental Property Investor
  • Elkridge, MD
Posted Jul 29 2020, 04:47

I'm attempting to be conservative when pulling comps for value add acquisitions in Baltimore City, MD. The areas that don't have a sufficient/good comps, then I feel like I'm leaving an opportunity.

I use the following:
Radius of .25 miles out from the subject property
Closed within 365 days

From there, I get a sense of the sales within the entire area for the past year.
Then I narrow both parameters to ideally:
Radius of .1 miles out from the subject property
Closed within 90 days

I'll look at Bed/Bath count, Sq Ft, type, property condition/finishes

First question: what could I do to improve my process for determining ARV?
Second question: for those properties that don't have comps, what should I do? I've heard of a valuation method utilizing sq ft or price per sq ft??

If so, could you elaborate on how I can pull that number?

Thanks!

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