Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago on . Most recent reply

User Stats

35
Posts
6
Votes
Peter Fuentes
  • Hollywood, CA
6
Votes |
35
Posts

Question about house flipping and the houses value

Peter Fuentes
  • Hollywood, CA
Posted

If im buying a house for $5 dollars and adding $2 dollars of repairs... The house is now able to sell for $10?

Is the value of the actual material added and the ARV correlated?

It took us $100,000 to build this house...but we are selling it for $150,000.

Is that how Real Estate works?  Am I missing something?

Most Popular Reply

User Stats

6,681
Posts
7,666
Votes
Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
7,666
Votes |
6,681
Posts
Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
Replied

The ARV is not a product of how much you put in, it's a product of how much you can sell it for which is directly associated to sold comps in the nearby area that match the home you are selling. If the materials and flip budget were a part of the real ARV, people could overspend and recoup, but it doesn't work like that. Your purchase price and ARV are not related, only in terms of how much profit you will make. Your ARV is an after repair value, but is the market value for a flip.

business profile image
Zen and the Art of Real Estate Investing
5.0 stars
9 Reviews

Loading replies...