ARV Calculator – After Repair Value
Calculate the After Repair Value (ARV) of a property to determine its potential value after renovations. Essential for real estate investors evaluating flip opportunities.
ARV Results
Investment Analysis
Key Metrics
Renovation Value Guidelines
| Renovation Type | Cost Range | Value Increase | ROI |
|---|---|---|---|
| Kitchen Remodel | $15,000 - $40,000 | $10,000 - $25,000 | 60-80% |
| Bathroom Remodel | $8,000 - $20,000 | $6,000 - $15,000 | 70-85% |
| Flooring Replacement | $5,000 - $15,000 | $4,000 - $12,000 | 75-90% |
| Exterior Painting | $3,000 - $8,000 | $2,000 - $6,000 | 60-80% |
| Landscaping | $2,000 - $10,000 | $1,500 - $8,000 | 70-85% |
Understanding After Repair Value (ARV)
After Repair Value (ARV) is the estimated value of a property after renovations and repairs are completed. It's a crucial metric for real estate investors, especially those involved in house flipping.
How ARV is Calculated
ARV is typically calculated using the formula: ARV = Current Value + Value of Renovations - Holding Costs. However, real estate investors often use comparable sales (comps) of recently renovated properties in the same area.
The 70% Rule
Many investors use the 70% Rule as a guideline: Purchase Price + Repair Costs should not exceed 70% of the ARV. This helps ensure a profitable flip while accounting for holding costs, selling expenses, and profit margin.
Factors Affecting ARV
- Location: Neighborhood desirability and market conditions
- Property Type: Single-family, condo, townhouse, etc.
- Renovation Quality: Materials and workmanship standards
- Market Trends: Current appreciation and demand
- Comparable Sales: Recent sales of similar renovated properties
ARV Calculation Methods
- Comparable Sales Approach: Compare to recently sold renovated properties
- Cost Approach: Add renovation value to current property value
- Income Approach: Based on potential rental income (for investment properties)
- Appraisal: Professional appraisal for accurate valuation
Tip: Always verify ARV calculations with multiple methods and consult local real estate professionals. Market conditions can change rapidly, affecting property values.