How do I go about estimating the ARV? Is it just the assessed value of the property? I want to run my numbers but a little confused on find the correct ARV. Please help a lost soul!
The After Repair Value can be determined by getting Comps from your friendly Realtor on your team. The assessed value of the property is always way to low and for taxes I believe. Also don’t really bother with sites like Zillow if you want to get an exact ARV, they are just calculated by some formula and tend to be unreliable.
Hope that helps some
I find it harder to figure the repairs them self vs. ARV (comps). Here is a link to a pdf file to calculate material cost and labor toward repairs.
http://www.home-builders.org/Katrina%20Info/Repair%20Cost%20Pricing.pdf
Try posting an add on craigslist looking for a Realtor to give you comps. Also go to your local REIA group and there are always Investor friendly Realtors there that could help you. You can even look in the phone book and start calling agents. There is no really reliable website that can give you comps outside of the MLS. You need to have a Realtor on your team anyway, this is a good “In” to start up a relationship. Good luck
Most rehab lender will do 65 to 80 ARV (After Repair Value) Here is the calculation: Offer= (ARV x 75%) - (Repairs + Holding + Closing cost)