Key takeaways
- Use sold comps only — never listings.
- 5+ comps, last 90 days, 1 mile, same bed/bath.
- Adjust for condition, lot, garage, finishes.
- Confirm with two agents independently.
- Provide appraiser a comp packet.
Core concepts
Comp selection
Recency > proximity > size > condition.
Adjustments
+/- per bedroom, per sqft, per garage stall, per amenity.
Appraiser influence
Comp packet + walkthrough notes increases accuracy.
Step-by-step framework
- 1Pull MLS sold list.
- 2Filter to 5 best.
- 3Apply line-item adjustments.
- 4Cross-check with 2 agent BPOs.
Advertisement
Common mistakes to avoid
- Using listings.
- Skipping condition adjustments.
- Ignoring lot or garage variance.
Frequently asked questions
Zillow ARV reliable?
No — algorithm lag and condition-blind.
Appraiser disagreement?
File reconsideration with comp packet.
Comp distance limit?
1 mile urban, 5 miles rural.
Condition adjustment magnitude?
5–20% typical.
Action checklist
- ☐5 sold comps.
- ☐Adjustments applied.
- ☐Two BPOs.
- ☐Appraiser comp packet.
More from BRRRR Investing
BRRRR Best Practices
The disciplined version of BRRRR — underwriting to ARV, sticking to budget, and refinancing into terms that hold.
Common BRRRR Mistakes
Most BRRRR failures trace to over-paid purchases, under-budgeted rehabs, or unrealistic appraisal expectations.
Beginner's Guide to BRRRR
Your first BRRRR — from finding a candidate property to executing rehab and refinancing without losing money.
Advanced BRRRR Strategy
Scaling BRRRR — parallel deals, portfolio refinancing, and creative capital stacks for experienced operators.
BRRRR Resource Center
Calculators, market data, and tools to underwrite, execute, and refinance BRRRR deals.
The 70% Rule Explained
Why the 70% rule still anchors BRRRR underwriting and when to bend it.