Chicago - 60628 Area Code

[Aaron Jones]

Good day everyone! I'm still learning and have two questions

1. For the Chicago 60628 zip code, should I use the 70% or 75% rule?

2. Extremely basic question, what is the difference between comps and ARV? I have calculated the comps for similar houses within a 1/2 mile radius and it comes to $170K, is this the ARV?

Thanks for helping this rookie!

[John Warren]

@Aaron Jones you should connect with @Mark Ainley about 60628. He would know that area. Your ARV (after repair value) is driven by your comparable sales in residential real estate. If your goal is to flip, always be conservative on your ARV as you may or may not be able to hit it. If you are trying to do the BRRR method, make sure your ARV is based on solid comps as appraisers are often times tougher on the cash out refinances.