All Forum Posts by: Sean Gover

Curios on how others went about purchasing their own homes if done after becoming an investor.  Did you go the usual realtor/mls route or did you market for value/fixer upper type?

@JD Martin  By investment property to you mean a buy and hold rental or a rehab and flip.  I'd agree on the rental as that is a cash flow game.  What can it rent for vs the cost of the property.  If you are positive cash flow then price/sqft doesn't really matter.

If you are flipping then I use p/sqft as a starting point then look for neighborhood comps of similar properties at a similar rehab level.  

If I'm doing that wrong I'd like feedback on how to better approach determining ARV.

@Mark Guagliardo No system of determining ARV will be exact. Using the 3 criteria you listed in the OP will not give you an exact number and is extremely subjective. Using price per square foot based on similar properties at a similar level of rehab gets you in the ball park objectively. From there you can make subjective additions or subtractions to determine your expected ARV.

So when you are doing a quick and dirty estimation of ARV you don't use a price per square foot calculation?

Since all that info is listed on all the sites like Zillow, do you not think that a buyer is going to use that as a comparison number? ARV's are ballparks anyway. Using other comps p/sqft that will be similar to your restore is a quick way to ballpark your ARV.

Will an 1800 sqft 3/2 home fetch the same price as a 2000 sqft 3/2 home in the same subdivision?  I'm not seeing it in my comps research. 

If you are going use a price per square foot system though you do need to know the area and the level of updating being done.    

That's my narrow opinion.  

Congrats @Joshua D.  That's gotta be a relief.

Thank you @Grant Sample.  Good to see someone else out there experiencing the same thing.

I'd go that route but it's taking months to form an LLC here atm. Very frustrating.

lol..thanks @Ayodeji Kuponiyi  I do all those things.

Lately it seems my sweet spot and their sweet spot is two different spots.