As an investor that is looking to fix and flip real estate, knowing what your ARV or after repaired value will be is crucial when investing. The ARV or After Repair Value is the future estimated value of the property after it has been rehabbed meaning it has been fixed, repaired, renovated. After the work of the property is completed, the ARV will be determined by using comparables (properties near our subject property that are as similar in size, age and style as possible to our renovated property) Having a precise and detailed idea of what the repair costs will be, is vital for getting the After Repair Value and if the property will be worthwhile to an investor. Finding the ARV is important
To determine what the maximum loan amount will be, but most importantly it will give the investor a sense of what the profit will be when flipping the property.