Question on arv for buy and hold

1 Reply

Hey BPers! So I have a question on ARV. If there are no repairs needed and you purchase at asking price, would you just put the purchase price into the calculator for the ARV as well? I’m analyzing a property and it’s at a 1.6 rule or cash flowing at 170 if using the 50 % rule, but diving deeper it says it has a negative cash flow of 500 a month. I’m wondering if this is because of the way i Input the ARV. Thanks!!

If there are no repairs then that is $0 and the ARV should be the same as the purchase price. You are not changing the value (unless the purchase price is below market value...in which case I would use market value as the ARV even though not doing any "repairs").