FREE After Repair Value (ARV) Calculator for Real Estate Investors
Our calculator below lets you explore both approaches while applying the famous "70% rule" to ensure your investment makes mathematical sense
Did you know that real estate investors who accurately estimate After Repair Value (ARV) are more likely to achieve their target returns? Despite this, a shocking number of first-time investors significantly miscalculate ARV, leading to costly investment decisions.
Ask any investor with years of experience – they'll tell you your ARV calculation is one of the most important investing calculations you must make in order to ensure the numbers make sense.
How to Calculate ARV Like a Pro
Professional investors rely on two primary methods to determine ARV:
- Comparable Sales Method: Analyzing recently sold properties with similar characteristics
- Price Per Square Foot Method: Using area averages multiplied by your property's square footage
Our free ARV calculator below lets you explore both approaches while applying the famous "70% rule" to ensure your investment makes mathematical sense:
BRRRR Method - After Repair Value (ARV) Calculator
Estimate the potential value of your property after renovations
Your BRRRR Property Analysis
Understanding the BRRRR Method
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is a popular real estate investment strategy. Here's a quick breakdown:
Buy
Purchase distressed properties below market value, ideally at 70-75% of ARV minus repair costs.
Rehab
Renovate the property to increase its value and make it attractive to renters.
Rent
Lease the property to tenants to generate monthly cash flow.
Refinance
Once the property is renovated and rented, refinance to pull out most or all of your invested capital.
Repeat
Use the money from the refinance to purchase your next property and start the process again.
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) has become increasingly popular among real estate investors looking to build wealth efficiently. Unlike traditional buy-and-hold strategies, BRRRR allows you to recycle your capital, potentially acquiring multiple properties with the same initial investment.
Success with this strategy hinges on one critical factor: accurately estimating a property's After Repair Value. This single number influences every decision in your investment process, from determining your maximum purchase price to planning your exit strategy.
What makes ARV calculation challenging is that property values vary significantly between markets. What works in Texas might not apply in California. Renovation costs, permit requirements, and rental demand all impact your final ARV—and these factors differ dramatically from state to state.
Our calculator above will help you determine ARV using both the comparable sales method and the price per square foot approach, while applying the industry-standard "70% rule" to ensure your investment makes financial sense.
What is the BRRRR Method?
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) has revolutionized how investors build wealth through real estate. Unlike traditional buy-and-hold strategies, BRRRR allows you to recycle your capital to acquire multiple properties more efficiently.
The success of this strategy hinges on one critical factor: accurately estimating a property's After Repair Value (ARV).
Why ARV Matters
ARV represents what your property will be worth after all renovations are complete. This single number drives every decision in the BRRRR process:
- Buy: Determines your maximum purchase price (typically 70-75% of ARV minus repair costs)
- Rehab: Helps prioritize which renovations deliver the best value
- Rent: Informs appropriate rental rates based on property value
- Refinance: Determines how much equity you can extract
- Repeat: Dictates how quickly you can move to your next property
The challenge? ARV varies dramatically between markets. What works in Dallas may not apply in Denver. Investors in California face higher labor costs and stricter renovation permits, while Florida investors must factor in insurance requirements that significantly impact value.
Beyond the Numbers: Mastering BRRRR in Your Market
While the calculator provides a solid foundation, successful BRRRR investors understand local market nuances:
- Rental Demand: Even properties with excellent ARV can struggle if located in low-demand rental areas
- Renovation Scope: Different markets value different improvements (e.g., pool additions add substantial value in Arizona but minimal value in Minnesota)
- Financing Options: Available loan products vary by location and can significantly impact your refinancing strategy
Remember that regulations around rental properties vary substantially between states. California has rent control laws in many municipalities, while Texas offers more landlord-friendly policies that can affect your long-term returns.
Conclusion: Your BRRRR Success Plan
The BRRRR method remains one of the most powerful wealth-building strategies in real estate when executed properly. By mastering ARV calculation with our calculator, you've taken the first step toward joining the ranks of successful investors who leverage this approach.
Start small, validate your ARV estimates with local professionals, and adjust your process based on results. Remember that even experienced investors typically build in a 10-15% margin of error when estimating ARV to account for market fluctuations and unexpected challenges.
Ready to take your real estate investing to the next level? Bookmark this page, use our calculator for your next potential property, and watch how accurate ARV estimation transforms your investment outcomes.
Have questions about implementing the BRRRR strategy in your specific market? Leave a comment below!