What is ARV? | How To Determine After Repair Value | Real Estate

After repair value (usually shortened to ARV) refers to a property’s estimated market value after it undergoes specific repairs and renovations. ARV is an essential factor for real estate investors who flip houses because it helps them determine the valuation of particular properties so they can maximize profitability and return on investment (ROI).

Understanding the ARV will help investors identify how much money they should invest in renovations and if the property is worth their investment. For example, if a house has a low fair market value and comparable housing in the area sells at a lower price point, investors can use the ARV to determine the profitability of their investment.

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⚠DISCLAIMER⚠ : I am not a certified public accountant, an attorney, an insurance agent, a contractor, a lender, or a financial advisor. The material in these videos should not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial, or other advice, and it is your obligation to check all information. This is a YouTube video intended solely for enjoyment!

[rickyrichy]

I remember when I first learned about this ARV. It was eye opening

[EduardoCortez-pvqs]

Does ARV matter when you want to keep the home to rent out ?