How to Analyze SFH without a Realtor or MLS Access

Question

This is my first post on the biggerpockets site. I am currently a senior in college and am starting to look at potential investment properties for when I graduate. For a little background info on why I am looking at these specific properties, my idea is to buy a small (2-4 unit) property to live in out of college. My alternative plan is to buy a SFH to rehab, refinance, and eventually rent out. I currently use Realtor.com, Redfin, and Zillow to find example properties to perform my multifamily calculations ( I just use a spreadsheet I created). Not many multifamily properties come up, so I was wondering if there was a somewhat simple way to look at SFH's and pull comps on them to analyze deals. I am about 8 months from purchasing a property so I figured it may be a little too soon to get a realtor. Thanks!

Andrew Michael · Answer

For multi families I would focus more on NOI rather than comps.

For SFH's of course the best is having access to MLS.  The sites you are using will get you a general idea of prices but I would suggest having someone pull true comps once you are ready to buy.

For now, try to find 3 similar properties actively listed for sale, 3 under contract, and 3 recently sold (say the last 160 days).  This will get you a general idea.  Also be sure to match the style of the property, square footage, # of bed and bathrooms, etc.  I would also set up alerts on these sites so you can track properties of interest.  See what price they are being listed at and then  check later for what they actually sold for so you can try to track market trends.

Benjamin Seibert · Answer

@Steve Haight I will definitely start networking with realtors. I didn't know being this far out from purchase if many realtors would even take their time to forward me properties or help out.

Benjamin Seibert · Answer

@Keith Goodwine okay, that helps a lot! I wasn't sure if there was a direct need for the MLS in pulling comps or if Zillow would suffice. Thank you very much.

Steve Haight · Answer

@Benjamin Seibert

Welcome to B/P, you will like it here I am sure. I have been on B/P and met some interesting people. I would say never to soon to start looking for a real estate agent. Find an investor friendly one, they can help teach you the market if you are new to it, you need to follow the market way before you buy and seems that is what you are doing. Get the best realtor that you can find in your hunt you may be more ready than you think.

Good Luck Here,

Keith Goodwine · Answer

I use Zillow, filter for recently sold in the area, and sort by square footage (highest to lowest is only option).  The best matches in terms of Bed/Bath/Square Footage and that have sold within a year are my estimates for ARV.  To me, what properties actually sell for is what makes for a good comparable value.  MLS has the added value of seeing what's under contract, but I can live without it.

I don't look at currently listed properties and here's why.  I live in a hot market and I'm not particularly interested what people are listing their homes for with realtors.  I've seen many houses sit on the market for a very long time because the seller wants higher than retail for a home that needs $40,000 in repairs.  They might think the land is valuable to a rebuild investor, or hope that transplants from California will justify the price tag/repair value because it's cheaper than what they're used to seeing.  The price eventually drops to true market value, or the house continues to sit on the market.  Either way, the listed price isn't always a representation of market value.  That's why I don't use list prices for comps.

Andrew Michael · Answer

PM me the address.  I will take a stab at it and email you what I find.

Benjamin Seibert · Answer

Thanks @Andrew Michael ! Yea, I understand the analysis that needs to be done for multifamily in terms of NOI and cash flow. I mostly meant just SFH where you need to find comps. So far it has been somewhat difficult to find good comps on the properties I have been looking at. I will keep searching though.

How to Analyze SFH without a Realtor or MLS Access

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