I am a new investor looking for my first property. can someone please instruct me on how can I find a property's ARV, thanks.
Calculating ARV can be as basic, or complex as you want to make it. First, you need to come up with a profile of the subject property (sq ft, lot size, location, features - pool/garage/etc), then research other properties within the neighborhood and build their profiles. Then compare profiles. You can use recent sales prices (don't go back further than 6 months, but paying very close attention to the last 45-90 days), calculate the dollar per square foot to use for profiles within the same square footage range, and create an AVR for the subject property based on what it will offer after the rehab is complete. You can use Zillow to get you started, but my suggestion would be to start looking at recent SOLD comps in the neighborhood and start building the profiles of those properties, giving value to added items like pools, garages, and single levels. Don't forget to take away value for busy street exposure, nearby detractors (backs to a commercial building or parking lot), or anything else that may steer buyers away from the property unless priced below average comps.
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