Home / Running Comps

Investor quick guide

Simple Guide to Running Comps

A practical cheat sheet for valuing deals fast, filtering bad comps, and sanity-checking your numbers.

The core idea

Accurate comps come before financing, rehab budgets, or ARV assumptions.

This guide lays out a simple, repeatable system for deciding whether an opportunity is worth pursuing, or walking away from.

Step 1

How to Find 3–5 True Comps

A "true comp" is a property that mirrors your subject property as closely as possible.

Date

Sold in the last 3–6 months

Distance

Within a 0.5–1 mile radius (closer in dense markets)

Type

Same property type: SFR, duplex, condo, etc.

Size

Similar: ±15–20% of square footage

Layout

Similar bed and bath count

Condition

Similar renovation level or condition

Golden ruleIf a buyer would not realistically consider both properties, it is NOT a comp.

Step 2

What to Include vs. Exclude

Include

Only SOLD properties (not active listings)
Same neighborhood or micro-market
Similar condition (renovated vs. distressed)
The closest possible match in size and layout

Exclude

Active listings (they reflect aspiration, not reality)
Outliers (luxury upgrades, pools, extreme finishes)
Old sales (unless the market is slow)
Properties with major structural differences

Step 3

Price Per Sq Ft Sanity Check

Your quick filtering tool.

Sale price ÷ Living sq ft = Price per sq ft

What to look for

Is your opportunity within the same range as recently sold comps?
Is it significantly above or below the market average?

Red flags

HigherPotential overpricing or unrealistic ARV

LowerDistressed asset or missing rehab adjustments

Think of this as a reality check, not a valuation method.

Step 4

Common Investor Mistakes

Using active listings instead of sold comps
Stretching the radius too far to justify the numbers
Ignoring differences in property condition
Relying on a single "best case" comp
Forgetting the impact of renovation on value
Mixing different property types

The biggest mistakeTrying to make the opportunity fit the numbers, instead of letting the comps show reality.

Step 5

Quick "Is This Price Realistic?" Test

Ask yourself and mark your answer. The result updates automatically.

1Would 3–5 recent buyers realistically pay this price?YESNO
2Does the price per sq ft align with nearby SOLD comps?YESNO
3Could this property list and sell quickly at this price today?YESNO

Answer all 3 questions to see the result.

Decision rule

3 / 3 YES

Likely a solid opportunity

2 / 3 YES

Needs a deeper review

1 / 3 YES

Walk away or rework the numbers

Final takeaway

Comps don't lie — the market does.

If your comps don't clearly support your purchase price and exit strategy, the deal is already giving you the answer.

Need help analyzing an opportunity?

Get a second opinion on an opportunity, its pricing, or a DSCR scenario. Send us your details and the team will reach out.

KAPLAN PRIVATE LENDING · Investor Guide · Running Comps

Kaplan Private Lending · 961 Marcon Blvd, Suite 113, Allentown, PA 18109 · Serving PA, NJ and surrounding areas

Professional Associations

All loans are for investment property only and are subject to underwriting approval.