As discussed previously, a large part of buying an investment property is knowing what your after repaired value will be for the property, so you are aware how much profit you can make. There are multiple factors that go into finding good comparable sales that will help you find the most accurate value for your property. One of these factors, as Justin discusses in this video, is using comparable property types to your subject property. He explains how different property types can value for different prices; you want to be sure that the comps you are using to value your subject property are the same property type, otherwise you will be adjusting the value to compensate for the difference.
Part of our lending process at Pine Financial Group, is making sure both ourselves and our borrowers understand the numbers on a deal. These numbers consists of purchase price, repairs, closing costs, and after repaired value. The after repaired value is a number that we look at thoroughly, whether it be through an appraisal or comps, to ensure that our borrowers will be making a solid profit on their next deal, rather than losing money on it.
If you have any questions with how to find your after repaired value, or would like a second opinion on your value, please feel free to reach out to us! Check us out at http://www.pinefinancialgroup.com, through our Facebook page at http://www.facebook.com/pinefinancial or give us a call today at 303-835-4445.