Best way to determine ARV

9 Replies

Hey guys and gals,

I am looking for my first investment property. I am currently living in Casa Grande, AZ but also looking into the Phoenix and Tucson markets for fix and flip properties. I am interested in flipping in Casa Grande since it is an upcoming area but also have trouble determining the ARV to make the right offer and profit in the end.

What is the best way to determine ARV for these properties? Any advice would be helpful.

Is this information for accessible to me if I get my real estate license?

@Taronda Ransom , ARV is determined by comparable, recently sold properties (a.k.a. "comps"). This is a bit more art than science, but is the best yardstick you have.

Becoming an agent will make it easier to access the info and the training / licencing process should teach you all about comps and how they're used. To be clear, sales prices are public information, but it's just easier to access when you're an agent.

Hi Taronda, I live in Tucson and Im just getting started in my investment journey as well. What I have found very helpful is to find a local realtor who is familiar with investing and preferrably one who is also an investor. They will be able to look up and provide ARVs for you. Also have them provide you with the listing comps not just the ARV number. This way you can start to educate yourself on what to look for. I would also recommend grabbing one of the books on Bigger Pockets. The book on Flipping Houses is good. Best of wishes on your journey!

@Taronda Ransom

I recommend signing up on Realtor.com or Redfin.com (or both) as you can search 'Recently Sold' properties within a specified time frame (i.e. past 6 months) for free. From there, it's a matter of analyzing those properties closest to the property you are looking at - both geographically and in terms of specifications - to properties further out from the subject property. Your goal is to match apples to apples (i.e. sq footage, #BR/BAs, amenities, style, etc) as closely as possible. 

You can enlist the help of an agent, but keep in mind that most agents are reluctant to help you out of the kindness of their heart, rather, they will likely expect to represent you in a purchase so as to not waste their time. If you are looking at approaching possible sellers directly (i.e. door knocking or yellow letters), then don't bother with agents. 

I'm just starting out too, in a similar place. Months ago I considered getting my real estate license, but I came to realize that it is not worth the time, expense and ongoing expense to maintain the license just in order to have access to MLS. I'd focus on finding an investor savvy real estate agent to help you, and make it a give-take relationship by allowing them to represent you on your first deal, and hopefully ongoing if you like them.

I've been researching comps myself using the suggestions given on looking at recently sold 90 days on redfin, realtor.com or zillow. Finding that very helpful to estimate ARV.

I use the calculators on BP a lot too when evaluating deals.  Super helpful!  

Good luck on your goals, maybe come to some of the local meetups too.  I am about to join AZREIA to learn more.

@Taronda Ransom if you go onto the AZREIA website it will list out meeting times, I think there is one this coming Monday. Also, on Meetup.com there are LOTS of events listed and groups for investors if you do a search on there for local meetups. I joined a bunch of groups. 

If you need ARV/comps let me know. If I'm not busy I can help for free. I do it for my Mortgage guy every so often. As long as we pat each others back it's easy to help out.