Calcolatore Valore Dopo RistrutturazioneFormula

Estimating After Repair Value

ARV projects what a property will be worth once renovations are complete, using a value-add multiplier that reflects how much each rehab dollar increases property value.

Formula

ARV = Current Value + (Rehab Cost x Value-Add Multiplier)

Value-Add Multiplier Guidelines

  • 1.0 means each dollar spent adds exactly one dollar of value (break-even)
  • 1.5 means each dollar spent adds $1.50 of value (typical for smart renovations)
  • Below 1.0 means you are over-improving relative to the neighborhood
  • Esempio Risolto

    A distressed property is worth $200,000 as-is. You plan $50,000 in renovations with a 1.5x value-add multiplier.

    1. Value added by renovations: $50,000 x 1.5 = $75,000
    2. After Repair Value: $200,000 + $75,000 = $275,000
    3. Net equity gain from renovation: $75,000 - $50,000 = $25,000