After Repair Value — Smart Financial Analysis
The Flipper's Profit Bible. Calculate ARV, apply the 70% rule, analyze flip profit, BRRRR refinance potential, and avoid money pits.
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ARV is the estimated market value of a property after all renovations and repairs are completed. ARV = Comparable Sales Price (adjusted for condition, square footage, bedrooms, bathrooms, lot size, and amenities). The 70% rule states: never pay more than 70% of ARV minus repair costs. ARV is the foundation of every flip.
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Why: ARV is the estimated market value of a property after all renovations and repairs are completed. It's the cornerstone metric for house flippers and real estate investors. A...
How: Enter Purchase Price ($), Repair Costs ($), Improvement Costs ($) to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
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🏚️ Flip Scenarios — Click to Load
Deal Numbers
Investment Breakdown
ARV Comparison to Cost
Profit Margin by Scenario
ROI Projection
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
After Repair Value analysis is used by millions of people worldwide to make better financial decisions.
— Industry Data
Financial literacy can increase household wealth by up to 25% over a lifetime.
— NBER Research
The average American makes 35,000 financial decisions per year—many can be optimized with calculators.
— Cornell University
Globally, only 33% of adults are financially literate, making tools like this essential.
— S&P Global
After Repair Value (ARV) = Current Value + Value of Renovations. It's the cornerstone metric for house flippers and real estate investors. The '70% Rule': never pay more than 70% of ARV minus repair costs. On a $350K ARV property needing $50K in repairs: max offer = $350K × 0.70 - $50K = $195K. Average flip profit is $67K (ATTOM Data 2023) with a 29% ROI. The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) uses ARV to pull invested capital out through refinancing. Over-improving is the #1 mistake — spending $100K on a house in a $260K neighborhood caps your ARV.
Sources: ATTOM Data Solutions, BiggerPockets, Zillow, National Association of Realtors.
📋 Key Takeaways
- • ARV = comparable sales price adjusted for property differences
- • The 70% Rule: Max Purchase Price = (ARV × 70%) − Repair Costs
- • BRRRR Strategy: Buy, Rehab, Rent, Refinance, Repeat — all depends on accurate ARV
- • Comps should be within 0.5 miles, sold within 90 days, similar size/condition
💡 Did You Know?
- • The average house flip profit was $67,000 in 2023 — but 12% of flips lost money (ATTOM Data)
- • HGTV makes flipping look easy — actual average renovation goes 20% over budget (National Association of Home Builders)
- • The 70% Rule has protected flippers since the 1980s — it accounts for holding costs, closing costs, and profit margin (BiggerPockets)
- • 72,960 homes were flipped in Q3 2023 — 7.5% of all sales (ATTOM Data)
- • Renovation ROI varies: kitchen remodel 75%, bathroom 70%, new roof 60%, pool addition 40% (Remodeling Magazine)
- • The BRRRR strategy lets investors recycle capital — one down payment funds unlimited properties (BiggerPockets)
📐 How It Works
1. Finding Comps (CMA process)
Use recent comparable sales to estimate ARV. Adjust for square footage, bedrooms/bathrooms, condition, lot size, and amenities.
2. The 70% Rule Applied
Max Offer = (ARV × 0.70) − Repair Costs. The remaining 30% covers profit, holding costs, closing costs, and selling costs.
3. Renovation Budget Planning
Add a 10–20% contingency to repair estimates. Underestimating repairs by 20% is common and can erase profit.
4. BRRRR Strategy Walkthrough
Buy, Rehab, Rent, Refinance, Repeat. Refinance at 70–80% of ARV to pull capital out for the next deal.
💡 Tips
- • Always add a 10–20% contingency to repair estimates
- • Use 3–6 comps within 0.5 mile, sold within 90 days
- • Cosmetic updates (paint, flooring, curb appeal) usually outperform structural work on ROI
- • If purchase price exceeds the 70% rule max offer, walk away — it's a money pit
🔨 Renovation ROI
| Type | Avg Cost | Value Added | ROI % |
|---|---|---|---|
| Kitchen | $25K | $44K | 75% |
| Bathroom | $15K | $26K | 70% |
| Roof | $12K | $19K | 60% |
| Windows | $18K | $31K | 70% |
| Pool | $50K | $70K | 40% |
❓ Frequently Asked Questions
What is After Repair Value (ARV)?
ARV is the estimated market value of a property after all renovations and repairs are completed. It's the cornerstone metric for house flippers and real estate investors. ARV = Current Value + Value of Renovations. You estimate it using comparable sales (comps) of similar renovated homes in the same neighborhood.
What is the ARV formula?
ARV = Comparable Sales Price (adjusted for condition, square footage, bedrooms, bathrooms, lot size, and amenities). There's no single mathematical formula — ARV comes from a Comparative Market Analysis (CMA) using 3-6 recent sales within 0.5 miles, sold within 6 months. Adjust comps up or down based on your property's differences.
What is the 70% rule in real estate?
The 70% rule states: never pay more than 70% of ARV minus repair costs. Max Offer = (ARV × 0.70) - Repair Costs. This leaves ~30% for profit, holding costs, closing costs, and selling costs. On a $350K ARV property needing $50K in repairs: max offer = $350K × 0.70 - $50K = $195K. It protects flippers when ARV estimates are wrong.
How does ARV relate to house flipping?
ARV is the foundation of every flip. Flip Profit = ARV - Selling Costs - Total Investment (purchase + repairs + holding + closing + financing). The 70% rule uses ARV to set your max purchase price. Average flip profit was $67K in 2023 (ATTOM Data) with 29% ROI. Over-improving — spending more on rehab than the neighborhood supports — is the #1 mistake.
How do I estimate ARV?
Use 3-6 comparable sales within 0.5 miles, sold within 6 months. Adjust for: square footage (per sq ft), bedrooms/bathrooms, condition, lot size, amenities. Zillow, Redfin, and MLS comp reports help. Average 3 comps and apply a conservative adjustment. Example: 3 comps at $275K, $290K, $280K → ARV estimate $282K ± 3% — use conservative $275K for safety.
What is ARV vs as-is value?
As-is value = what the property is worth today in its current condition. ARV = what it will be worth after renovations. The gap between them drives flip profit. A $150K as-is house needing $50K in repairs might have $280K ARV — that $80K spread (minus costs) is your profit potential. Lenders use ARV for refinance appraisals on investment properties (BRRRR strategy).
📊 Key Stats
📚 Sources
- • ATTOM Data Solutions
- • BiggerPockets
- • Zillow
- • National Association of Realtors
⚠️ Disclaimer: This calculator provides estimates for educational purposes. ARV depends on market conditions, comp selection, and appraisal. Not financial or investment advice. Consult a licensed real estate professional.
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