Hello, I am currently looking at a property in my home town it has not had the utilities turned on for about a year now is this something that runs people away from purchasing the property? Also, it slopes in the bathroom but has peril beams so I don't believe that would be a huge issue let me know if I am wrong about that.
Also, how are you guys accurately calculating after-repair value?
Raleigh, NC · Member since 2020 · 30 posts · 25 votes
3y
It's usually pretty easy to determine ARV by looking at comps that sold in that area for similar sized properties and that are updated to the level that you plan on updating the property. But as always, try to be conservative with ARV especially in this market when home prices could be going down, before they go back up.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Chase Tompkins thanks for posting. Always great to hear from a fellow Texan. You've asked some big questions here.
First, you cannot see comps here in Texas. We are a non-disclosure state. This is something you'll have to learn to navigate around though because running comps is important if you are a real estate investor.
Secondly, when a property has had the power turned off more than 6 months in our state that usually requires an inspection to be performed on the home to turn power back on. It doesn't happen in EVERY situation....but in most it will. While it may not be something that forces people to "run away" it should certainly be accounted for in our rehab estimate.
To me, the most important step for you to take right now is working/learning from other investors in your area. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Even facebook will have some. Networking is always a great practice and you never know who you might meet there and what good information they have to share.
Let's get plugged into those and take it from there. I think that would be the most helpful.