How much does a new roof effect the ARV on a SFH

[Tyler Smith]

I am in the process of doing a BRRRR on a SFH. The roof is relatively new (within 3 years old), but looks bad. Should I purchase a new roof for $6500 and hope that increases the ARV?

My expected numbers on the SFH (without the new roof) are below:

Purchase Price: $155,000 cash

ARV: $300,000

 75%: $225,000

REHAB: $70,000

Should I add the new roof for the overall aesthetic of the home but more importantly will this raise the ARV to help accommodate the extra rehab expense?

Thanks!

[Kenneth Garrett]

@Tyler Smith

If the roof is only 3 years old doesn’t leak and was installed correctly hire a company to clean it.  It will look great when there done.  I’ve had it done it will be a big improvement.  If you were flipping it I would say it’s a must.  For a rental it’s just an aesthetic look.  Pay a few books and clean it.