question for brrrr strategy

[Aldrin Meneses Quijada]

what do you mean by 70% ARV? or the rule of the thumb?

[Nicholas L.]

@Aldrin Meneses Quijada

ARV is after repair value. This is the projected value of the property after the rehab is complete. For single family homes and small multi this is determined by comps - comparable homes in the same market / location.

70% of ARV means that you want your costs - purchase, rehab, closing, etc. - to total 70% of this number.

BRRRR only works when there is significant potential to increase the ARV. if something just needs a touchup... it's going to be very, very difficult to buy at the discount that you need to make BRRRR work.

hope this helps