New to wholesale in Kokomo, IN
Hello everyone!
First post on BP!
I went to a paid legacy education weekend boot camp in Nov. 2018. That seemed to be an up-sale for the 15k-45k courses they had to offer. I did get what seemed to be a very basic skim through of many different strategies.
I am new to the wholesale world and I am based in Kokomo, IN. I have been driving for dollars and leaving letters on the vacant property windows. I also started using DealMachine.
My main question and I am struggling to find a solid answer is: I have been having difficulty calculating ARV in my area due to low volume in sales for running comps. I have read about basing it off rents in the area. Anyways, I am looking for any and all guidance in this are. Thanks in advance!
Most Popular Reply
You can get a very rough estimate of ARV by manipulating the 1% or 2% rule equation. ARV=rent/(0.01) or ARV=rent/(0.02). To use this, you will have to have analyzed enough rentals to know what percentage is typical for your market. There is a HUGE difference in ARV depending on the percentage.
I would never use this method beyond getting a SUPER rough estimate, but I hope it helps!