Pittsburgh, PA · Member since 2017 · 27 posts · 2 votes
I have been analyzing some deals but I can't seem to accurately (or comfortably) figure out the ARV. What are some good methods/ strategies or formulas to use in figuring out the ARV of a property? My goal is to be confident and ready by the time I graduate in 3 months to find and execute a great deal. Thanks!
Investor · Cedarburg, WI · Member since 2013 · 439 posts · 150 votes
9y
Michael, the simplest but also less accurate way is to go on a site like zillow or Trulia and look for houses that are in the same area with similar sq ft, number of rooms and year built. This will not get you great numbers, but at this point it will at least give you an idea of generally what to be thinking about. There are lots of articles on bp about estimating arv. Also do some research on what houses cost to repair in your area. A very simple way to start might be one of those websites that give you cost per daft estimates for different repairs.
It sounds like you are in the learning phase, so do lots of reading and maybe see if you can find some properties to evaluate for practice.
As you start to get a sense for arvs, purchase prices and repair costs you could consider reaching out to a local investor in your area who is doing what you would like to do. Offer to take them to lunch or coffee and have them tell you about some of the deals they have done.
Good luck!