Fix and Flip
How to Pull Comps and Calculate ARV
Flipping is a math business wearing a construction costume. Here is the part of the math this topic covers.
Fix and Flip
The short version, then the substance.
Key Takeaways
- The comp criteria that count
- The adjustments
- Triangulate and stress test
The comp criteria that count. Closed sales within half a mile, sold inside 180 days, within 20% of your square footage, same bed-bath profile, renovated to the level you will deliver. Adjust honestly for what does not match. Listings are opinions. Closings are facts.
The adjustments. Add or subtract for garage count, lot size, pools, and condition deltas. Keep adjustments small and defensible. If you need three big adjustments to make a comp work, it is not a comp, it is a wish.
Triangulate and stress test. Take three to five real comps and land your ARV at the conservative middle, not the heroic top. Then ask what the value is if you had to sell in 30 days. If the deal still works at that number, you have a real deal.
The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.
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Related reading and next steps.
Questions
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