Calculating Arv/repair cost

[Ligmon Williams]

Hey guys have A few questions that I think could help me and many other wholesalers/real estate investors close more deals.

1. What tools do you use to accurately calculate the ARV of a property?

For ex. I use propstream and Zillow if their are properties that has sold for 175k, 132k, 115k and 120k all fixed up do I get the average of these 4 numbers or can I go with the highest number ?

2. Also, if I'm looking to get the arv of a 3/1.5 but only 3/1 and 3/2 have been sold in the area how do I go about finding the ARV of the 3/1.5 ?

3. I was told by a GC out of NC that to estimate cost of repairs in a property you would consider a light rehab you could get the sqft of a property and multiply by $25, medium $35, heavy $55 and full rehab $75+. I know this definitely works in his market but Do you think those numbers would be the same or close to the same everywhere else ?

[Jaron Walling]

I'll take a chance here:

1. The tool I use to accurately calculate the ARV is comps. Specifically anything within a small radius (1-2 miles) of the property. They need to be within the last 6 months.

2. I'd split the difference between the two properties. Again the comps need to be VERY SIMILIAR to the target property. Everything matters. How old is the roof? What's the condition of the HVAC? Are the kitchens remodeled to similar spec? Those are the high dollar items that make a difference. 

3. What your GC friend told you is fine but I wouldn't use that advice. The numbers are different across the country. Walk the property and create a scoop of work for your self. You need details for each room and renovation project and then build a budget around it. You're going to realize most rooms don't need anything other than paint and a light fixture. OVER REMODELING is killer to flips and the BRRRR strategy. Don't fall into that trap.