Skip to content
Austin Real Estate Forum

User Stats

42
Posts
16
Votes
Austin Joseph
  • Specialist
  • Austin, TX
16
Votes |
42
Posts

Higher ARV % For Competitive Markets

Austin Joseph
  • Specialist
  • Austin, TX
Posted Mar 23 2019, 10:02

Hey everyone, 

I've always been under the impression that investors try to purchase properties for 70% of ARV (Example: $60k purchase, $10k repairs, $100k ARV).. but today I was listening to a podcast and the host said not to get too hung up on the ARV value because in his market (Phoenix) many cash buyers will settle for 80% or even 85% of ARV due to the competitiveness. Are Austin buyers running similar numbers or are they sticking to the 70% rule?

Loading replies...