What a property will be worth after renovations, based on comparable sales.
Flippers and BRRRR investors buy on ARV, not current condition. Most work backward from it: the classic 70% rule says pay no more than 70% of ARV minus rehab costs.
Example: Comps at $185/sq ft × 1,600 sq ft ≈ $296,000 ARV.
FAQ
What is ARV in simple terms?
Flippers and BRRRR investors buy on ARV, not current condition. Most work backward from it: the classic 70% rule says pay no more than 70% of ARV minus rehab costs.