ARV: How to calculate

[Josh Boyd]

Greetings,

This is my first BP post! 

My wife and I will soon be purchasing our first property using the BRRR strategy (Kudos to all the BP books and podcasts on this topic). It is very clear to me when using hard money, I need to be sure that I calculate the ARV correctly from the start. I came across a duplex in our area this week, and I realized that I have no idea how to calculate the ARV accurately. Would you point me toward the book, BP Podcast episodes, or other information where I can learn more on calculating the ARV as it relates to a specific area, city, location, etc. I am using the BP calculators, but it is very important to me that I understand every formula, why it matters, and know which set of numbers I should prioritize. I want to be sure that when I go for hard or private money, I not only protect my interests, but am also responsible for the money that I am borrowing.

Thank you for your help.  

[Josh Boyd]

Quote from @Michael Kinsella:

@Josh Boyd A realtor should be able to give you a good idea.

Appraisers will look at properties that have already sold recently, so you'll want to stay away from active listings.

Characteristics such as SF, bd/br count, and proximity to the subject property should also be looked at.

Good point. I will check the sold recently properties and not the current listings. I hadn’t thought of that. Thank you!