After Repair Value - How to Calculate Value?

[Lidicce Rodriguez]

Hey Guys !

I am new to the Bigger Pockets website but have been following the podcast and videos on you tube for quite some time now.

I'm interest in Fixing and Flipping but the one thing I can't seem to get any specifics on is calculating the ARV and how to figure out what kinds of improvements are valuable and worth it versus improvements that are not.

How do I know the house is going to be worth X amount of $'s more when I add a bedroom or garage?

For Example:

If I had to choose between adding a bedroom or re-doing the laundry room/expanding closet space.

How would I know which one is going to  be more valuable over the long term?

I hope my question makes sense.

look forward to hearing from you guys.

[Darrell Shepherd]

Some of it is experience and common sense. Easiest way is to look at what things are selling for per sq/ft in that area and do the math. Look at what's sold, for how much, how many days on market and make comparisons to what yours would be like. ARV is just a guess, at the end of the day the house is worth what somebody (who can pay you) will pay you. The more educated you get the smarter your guess will be.