How do you value extra bedrooms when comps just don't match? Is finding a mentor really essential?

And should you get your real estate license or is that just another distraction?

Today we're breaking down three key questions from rookie investors just like you.

This is the Real Estate Rookie Podcast. I'm Ashley Care.

And I'm Tony J. Robinson. And with that, let's get into today's first question.

So our first question today comes from Richard. Richard says, I'm looking to do a burr in a market that I'm not very familiar with. Actually, not familiar with this market at all.

The person I am doing it with brings a lot of value and they have resources in that market

that will make this cool.

Comps are an issue, though, because there are really no comps of similar properties.

The property is a five-bedroom two-bath, but it's only 2,300 square feet, whereas most of the five bedrooms in this area are 3,200 to 4,000 plus square feet.

This is more so the size of a 3-2.

So here's the question.

When evaluating after repair value, if we have a 3-bed and a 5-bed of similar size building condition, how much value do we

give to the extra bedrooms for the five-bedroom when the square footage is about the same as a

three-bed? I've seen articles with arbitrary numbers like 10 or 20K. Does anyone have any ideas? Thanks.

So I think before we dive into this, it's a very, like, real question that I think a lot of investors

struggle with is trying to make sure you nail down your cops to get your ARV. But let's just

describe first what ARV or after repair value is. So your after repair value or ARV is the value of

the property after you've completed whatever renovations you plan to complete.

So typically, you know, if you're flipping a home or if you're refinancing plans refinance,

you buy a distressed property, right, a property that's in disrepair, you invest money to fix it

up. And in the process of fixing that property up, you take its value from this lower level,

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