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Updated over 3 years ago on . Most recent reply
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ARV value who does it?
So I am looking to house hack with a duplex soon but I am looking to see at the brrrr method. So I just wanna know who and how do they determined the ARV value?
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Originally posted by @JD Martin:
Well, it's more of an art than a science, but more or less: the ARV is what a similarly rehabbed house of the same approximate size, geographic location, and amenities would sell for/has sold for. The last part is a moving target, especially these days, but unless you live in a really small area you can usually find similar houses that have sold, compare how well they are fixed up and where they are, and get a pretty good idea. If you can't, then you probably aren't familiar enough with your market to be investing in that area. There's also ways to make allowances for houses that are slightly larger or smaller than yours or in slightly better or worse areas if there's no great comparable sold properties in your area.
...and everyone involved will come up with a different number. You need to learn how to come up with your own, since all of your offers should be based on what the property is worth to you.