ARV After Repair Value Calculator
Calculate after-repair value for fix and flip properties. Determine maximum purchase price using 70% rule and ROI targets.
How it works
ARV estimates property value after renovations. The 70% rule suggests paying no more than 70% of ARV minus renovation costs to ensure profitable flips.
Example
$200K ARV - $30K renovation × 70% = $119K maximum purchase price for profitable flip.
FAQ
What is the 70% rule?
Pay no more than 70% of ARV minus renovation costs. This accounts for holding costs, selling expenses, and profit margin while providing a safety buffer.
How do I estimate ARV accurately?
Use recent comparable sales of similar renovated properties in the same neighborhood. Adjust for differences in size, condition, and features.
What renovation costs should I include?
Include all repair costs, permits, materials, labor, and a 10-20% contingency for unexpected issues. Don't forget financing costs during renovation.
When should I use 75% instead of 70%?
In hot markets with rapid appreciation, low inventory, or when you have extensive experience and can minimize risks and costs.
What if my ROI target is different?
Adjust the percentage rule based on your profit goals. Higher ROI requirements mean lower purchase prices and more selective deal criteria.