Micah Ainsworth you are correct, the $49k is the ARV. Take the ARV x .70 - repairs equals max allowable offer.
Actually the CMA would be the market value of the property in whatever condition it is in at the time of analysis. The ARV would be the estimated market value after whatever rehab you are doing.
Here is a post I wrote on my site about finding ARV I use a very easy system to find ARV
I find that I have accuracy rate of about 90% doing it this way
Good luck I hope this helps
Originally posted by @Micah Ainsworth :
I have a property I'm interested in making an offer on. I have a CMA for the property that puts the value at $49,175. Is that the ARV, or do I need to take into consideration the repairs needed? (New roof, total interior reno).
That really depends on if you prepared the CMA accurately. You can think of the ARV as what you would list/sell the house for today if it was in rent ready condition.
Thank you all for the feedback and links! I have a better understand of finding ARV.
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