What is ARV in Real Estate (and Why It's CRUCIAL for Investors)

What is ARV in Real Estate (and Why It’s CRUCIAL for Investors)

Episode #336

What is ARV in real estate? You’ve heard the term before but might not know what it means. ARV stands for after repair value, the value of a property AFTER you rehab, renovate, or upgrade it. While this metric may seem like something that only house flippers should care about, ARV is something that ANY rental property investor should pay close attention to because if you get it wrong, you could lose tens of thousands of dollars.

In this Rookie Reply, we’ll show you how to estimate ARV and what common mistakes rookies make when calculating this crucial number. Then we answer how to write off repairs vs. CapEx (capital expenditures) on your taxes, and Ashley’s easy answer when you don’t know the difference between the two! Plus, why you should ALWAYS check your breakers when something goes wrong.

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group, call us at the Rookie Request Line (1-888-5-ROOKIE), or click here: https://www.biggerpockets.com/reply?utm_source=youtube&utm_medium=description&utm_campaign=none

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Join the Real Estate Rookie Facebook Group:
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Submit Your Real Estate Rookie Question!
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Hear Our Recent Episode with Pace Morby:
https://www.biggerpockets.com/blog/rookie-280?utm_source=youtube&utm_medium=description&utm_campaign=none
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Software/Tools Mentioned in This Show:
EZ Calculator: https://www.fncalculator.com/
Invelo: https://inveloapp.com/
LandGlide: https://landglide.com/
onX Hunt: https://www.onxmaps.com/hunt/app
Privy: https://www.getprivynow.com/
PropStream: https://propstream.com/bp
Zillow: https://www.zillow.com/
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Follow Grant Warrington, the Apartment Investor Expert, on Instagram:
@grantwarrington or https://www.instagram.com/grantwarrington/
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Connect with Ashley and Tony on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Tony: https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none
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Shoot Ashley and Tony a Question on Instagram!
@wealthfromrentals or https://www.instagram.com/wealthfromrentals/
@tonyjrobinson or https://www.instagram.com/tonyjrobinson/

Show notes at: https://www.biggerpockets.com/blog/rookie-336?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro

02:29 How to Calculate ARV

09:03 Most Common ARV Mistakes

21:18 When ARV DOESN’T Matter

27:21 Writing Off Repairs vs. CapEx

35:00 Things WILL Go Wrong


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