Whether you’re flipping a house, executing a BRRRR, or buying a value-add rental, knowing your numbers is everything.
Two of the most critical metrics in real estate investing are:
- ARV (After-Repair Value) — what the property will be worth after renovation
- Construction Costs — what it will cost to get there
Get these wrong, and your deal could fall apart. Nail them, and you’ve got a blueprint for profits.
In this guide, we’ll show you how to evaluate ARV and construction costs accurately, using proven formulas, tools, and strategies used by successful investors.
What Is ARV (After-Repair Value)?
ARV is the estimated market value of a property after it’s been fully renovated.
It’s the number lenders, appraisers, and buyers care about—and the key to determining if a deal has enough margin to be worth pursuing.
🧮 ARV Formula:
ARV = Price per Sq Ft of Comparable Homes × Property Sq Ft
Or more practically: ARV = Value of Nearby Comps (post-rehab condition)
