Today I went through the comps on each of the 13 properties and narrowed them down to the best 3 or 4. I didn’t really have a method to my madness, I just generally looked at the style of house (colonial, cape code, ranch,etc..) and also looked at the pictures to see condition.
Once I found the 3 (or 4) best comps I…
- Averaged out their Sale Price to get the ARV for my prospective offer house.
- Multiplied that value by 70%
- Subtracted estimated repair costs (I used a standard 50k, which is roughly 13% to 17% of ARV)
- Subtracted my Profit (I used a 20k figure)
I really have no idea for repair costs at this point so I just plugged in a value that took into account
- upgrading bathrooms
- Upgrading kitchens
- Painting entire house inside and out
- Carpeting (or hardwooding) floors
- Then I doubled the cost
With that all said, below is my comp break down and MAO’s for each property.
A few things I might look into in more detail is setting an adjustment value for extra bathrooms, bedrooms and garages for cases where a comp has more or less. Tomorrow I’ll be picking the property(ies) I’ll be making an offer on so stay tuned.
P.S. I found out a great way to get an excel spreadsheet into wordpress. If you’ve tried cutting and pasting you know it comes out all a mess and in cases like above, the spread sheet is to long to take a screen shot of. So my tip is to Highlight the Spread Sheet and cut and past it into your image editing software like Paint.net or Photoshop. Save it as a picture and upload it into WordPress. Super Easy!!