All Forum Posts by: Katie Cool

I've just started sending out letters after getting the info. from the courthouse. Already have an appt. set to meet an out of town owner.

The property is in SoCal - suburbs.

ARV $380,000
repairs 15,000
costs for $, RE agents, closing $36,000
SUB $329,000

This is a REO, asking price $295,000. My thought is to offer $280,000.

Thoughts??

Overall the property is in good shape. Nice neighborhood. Updated homes are selling in 45 days.

Thank you. That is very helpful.

When figuring the ARV for a flip, I'm curious how others get there. I have been going off the average cost per sf of sold, updated houses, within a mile, with similar sf, baths, br and lot size, and sold within the past 3 mos. I do not consider REO's and SS since they are always lower. Then I multiply the average $/sf by the sf of the house I'm considering to get the ARV.

I know of other investors who also take the average $/sf of pending sales and active sales into account.

How do YOU figure out your ARV? Thanks.