Week 1
Sniffing Out the Numbers
REI Foundations • Comparable Sales • After-Repair Value
By the end of this lesson, you can…
REI stands for Real Estate Investing—using property to pursue income, appreciation, equity growth, or profit. Investors may own, improve, manage, sell, finance, or invest indirectly in real estate.
Major real estate investing strategies
A house flip generally follows a simple model: locate an opportunity, buy at a price that leaves room for the project, renovate thoughtfully, and resell. The idea is simple; the execution depends on accurate numbers.
Your projected resale value influences how much you can pay, how much renovation makes sense, which finishes fit the neighborhood, how lenders may view the deal, and whether the expected return is worth the risk.
A comp—short for comparable sale—is a recently sold property sufficiently similar to the subject property to help estimate market value. A comp is evidence; it is not automatically a perfect match.
The S.O.L.D. test
Closed sales show what buyers actually paid.
Start in the same neighborhood or subdivision.
Match type, size, beds, baths, style, age, lot, and features.
Start with recent sales, often within 3–6 months.
✓ Stronger Comparable
- Same neighborhood
- Recent sale
- Same property type
- Similar size and features
- Similar renovated condition
× Weaker Comparable
- Across a market boundary
- Several years old
- Different property type
- Major unexplained differences
- Condition unlike the subject
ARV stands for After-Repair Value: the estimated market value after the planned renovation is complete, assuming normal market exposure and a finish level appropriate for the neighborhood.
Worked example
Subject: renovated detached home • 1,600 sq. ft. • 3 beds • 2 baths • 1-car garage
| Comp | Sold | Sq. Ft. | $/Sq. Ft. | Distance | Note |
|---|---|---|---|---|---|
| A | $405,000 | 1,560 | $259.62 | 0.2 mi | Updated; very similar |
| B | $420,000 | 1,630 | $257.67 | 0.4 mi | Newer kitchen |
| C | $410,000 | 1,590 | $257.86 | 0.5 mi | Similar finish and lot |
Average price per square foot: $258.38. Applied to 1,600 sq. ft., the indicated value is $413,408. After reconciling the individual comps, a preliminary ARV range of approximately $410,000–$415,000 may be supportable.
Cash’s ARV Calculator
Enter three sold comps and the subject’s square footage. The calculator provides a starting point for your analysis—not a final appraisal.
These are public listing portals—not a complete substitute for an agent’s local MLS. Sold data, photos, and history vary by market. Verify important facts using more than one source.
Choose a subject property currently for sale—or use one assigned by your instructor. Fetch three sold comps and defend an ARV. Do not contact the owner or enter the property.