Two Bedroom Deals: To Pursue or Not Pursue and How Real Estate Comps Can Make All the Difference

I hear this question often, “Cam, I’m looking at a property but it’s a two bedroom home, should I avoid the deal or do it?” The reality is, there are scads of guidelines in the real estate investing world and a few hard and fast rules to follow, but one of your biggest guides will be what the real estate comps tell you.

When you come across a potential deal that goes against the known guidelines, and trust me you WILL, then it may be time to slow down, take a second look and perhaps reassess your options.

For instance, you don’t want to pass over a possible deal just because you turned a guideline into your unbreakable rule.

I have a case in point for today’s post where a potential deal goes against my own guideline of mainly dealing with 3-bedroom, 2-bathroom houses.

A student of mine asked me

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9 MUST KNOW Factors For Pulling Real Estate Comps You Can Trust

Sooner or later, you’re going to have to pull comparables on the properties you’re considering buying. It’s an important part of every successful Real Estate Investor’s day…

So let’s define a couple of terms before we dig into this…

First, the “subject property” is the one you’re considering buying.

Comparables are your absolute best tool to determine the value of the subject property. Real estate agents and investors like you and I will “run or pull comps”, to determine and justify the value of a subject property based on comparable properties that have sold recently within the area.

In other words, properties that are near by with similar square footage, similar number of bedrooms and bathrooms, possible upgrades and other considerations…

Now, there are lots of factors that help determine if a real estate comp is indeed comparable, and you need to know these factors and apply them each time you look at comps

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