The One Thing Every Real Estate Investor Must Know
One of the things that comes up a lot when we’re talking to investors is ARV and ARV is just “after repair value” of the house.
And one thing that we teach and try to help people come across is when they’re looking at the property that they’re looking to rehab, is just knowing what the comps are, and that’s going to dictate what the ARV is.
And so that means getting on HAR, looking at pictures of the houses that are currently under contract and basically looking to see what needs to be done on the property that you’re going to be taking on as a rehab.
So it could be in some areas, you know, just doing laminate countertops because that’s what the comps show of the houses are selling. Or it could be granite or quartz; upgraded backsplashes; upgraded full bathrooms.
So what I suggest to all investors is just really do the research on what the comps are that you’re going to be competing against because that’s going to dictate what the ARV is for your property.