How to Calculate ARV

[Brian Canady]

Hello All, just joined after joining the webinar last week decided to go Pro and all in currently. I am in the Midwest, Kansas City, MO to be exact and currently have 4 doors (luckily i was put in a very advantageous position where my father gave me those 4 after he did this and retired after being laid off years ago (frugal man and lifestyle i know) anyhow, I am looking to grow this portfolio and looking at Single family rentals and possible 2-4 unit multi-family rentals. I am very interested in beginning the BRRRR strategy after listening to some podcast episodes and recognizing the value of real estate. My biggest question would be when looking at a home, when or how do you calculate the ARV, for people investing and doing BRRRR's are you just looking at comps or are you actually speaking to appraisers and telling them what you plan to do and getting a rough estimate? Any help or point in a direction on where to search or look for how to calculate ARV on homes would be greatly appreciative as that seems like the biggest piece i'm missing within the rehab process. I am pretty handy (thanks to the same father mentioned above) and also have access to handy guys for important things like electrical and HVAC. But realizing what rehab can do in terms of property value is just something I have no knowledge of and look forward to fully understanding. Any help or direction would be greatly appreciative! Thanks and happy to join the community!!

[Daniel Toy]

Comps. Have an agent set you up with MLS listings in the area(s) you're targeting. I also refer to Zillow's "recently sold" feature (although reliability of it comes into question at times). Also search for comparable rents in the area (craigslist, rent.com, zillow, etc.) What parts of town are you interested in?