Calculadora de Valor Después de Reparación (ARV) — Fórmula

Understanding After-Repair Value

ARV is the estimated market value of a property after all planned renovations and repairs are completed. It is a cornerstone metric for house flippers and BRRRR investors.

Formula

ARV = Average Comparable Price Per Sq Ft x Property Sq Ft x (1 + Condition Adjustment)

How to Find Comparables

  • Look at recently sold properties within 0.5 miles
  • Match bed/bath count, square footage within 20%, similar age
  • Use only sales from the last 3-6 months
  • Adjust for differences in condition, lot size, and features

    • The 70% Rule

    Many investors follow the 70% rule: Maximum Purchase Price = ARV x 70% - Rehab Cost. This leaves a margin for profit and unexpected costs.

    Ejemplo Resuelto

    A 1,800 sq ft property with comps averaging $175/sq ft, a 5% positive condition adjustment, $200,000 purchase, and $45,000 rehab budget.

    1. Base comp value: $175 x 1,800 = $315,000
    2. Condition adjustment: $315,000 x 1.05 = $330,750
    3. Estimated ARV: $330,750
    4. Total investment: $200,000 + $45,000 = $245,000
    5. Potential equity: $330,750 - $245,000 = $85,750
    6. Investment-to-ARV ratio: $245,000 / $330,750 = 74.1%