Cents on the Dollar

[Nghi Le]

When people say something like, "I got this property for 55 cents on the dollar", are they referring to how much they've purchased it for, or how much it cost them (i.e. purchase + rehab)?

For example, let's say we have two properties, both have $100k ARV.

1st Property:  Purchased at $65k, rehab costs $10k.

2nd Property:  Purchased at $55k, rehab costs $20k.

Would you say that both of these are 75 cents on the dollar?

Another thing... is FMV the same as ARV? Or is FMV the price of the property in its current, pre-rehabbed state (assuming it requires a rehab)? I think I've seen people use it interchangeably and it has confused me. I've always thought that FMV was the value of the property as-is.