How are you calculating ARV in this changing market?

[Jessica Howard]

I am trying to figure out ARVs for properties I'm working on getting under contract and the 3-6 even 12 month comps seem out of context now that the market is changing and home prices are dropping? I started looking at comps from last year and even in 2020, but I haven't been in the business long enough to know what makes sense.  For those of you running ARVS in this market, how are you adjusting your numbers?

[Chris Seveney]

@Jessica Howard

This is a great question. There will be a lot of differing opinions. For us, we are discounting today’s values. It will really be dependent on the market. For example there are a lot more concerns in Boise and Phoenix than there are in certain other locations. But I would not be using today’s pricing. I personally also do not feel like there will be a significant drop between now and the next six months