# Question: What Is A Good ARV?

## What does ARV mean?

After Repair ValueThe After Repair Value (or ARV) of a property is a critical number for real estate investors, as it helps determine the difference between the as-is price of the home and the value of the property after repairs..

## What is the 70 percent rule?

Simply put, the 70% rule is a way to help house flippers determine the maximum price they can pay for a fix-and-flip property in order to turn a profit. The rule states that a fix-and-flip investor should pay 70% of the After Repair Value (ARV) of a property, minus the cost of necessary repairs and improvements.

## What is loan to ARV?

ARV. The Loan-to-Value ratio is the amount being borrowed as compared to the value of the property, while the After Repair Value is estimated based on the value of the property after the renovations are completed. …

## What is the ARV formula?

To get a more precise ARV, you can determine the average per square foot price (total sales price divided by the total square feet of the property), then multiply that price by the number of square feet in the subject property. … The subject property is 1,200 square feet, so your ARV would be \$174,000.

## How do you calculate ARV wholesaling?

The after repair value formula is:ARV = Property’s Current Value + Value of Renovations.Maximum Purchase Target = ARV x 70% – Estimated Repair Costs.Maximum Purchase Target = \$200,000 x 70% – \$30,000.Maximum Purchase Target = \$110,000.

## What does 70 of ARV mean?

After Repair ValueThe 70 percent rule state that an investor should pay 70 percent of the ARV (After Repair Value) of a property minus the repairs needed. The ARV is the after repaired value and is what a home is worth after it is fully repaired.