ARV

ARV is used in value-add and BRRRR strategies to determine how much a property will be worth once improvements are finished. It is the basis for the refinance loan amount in a BRRRR cycle. ARV is typically estimated using comparable sales (comps) within 0.5-1 mile and 90-180 days. Example: a distressed duplex purchased for $140,000 with $35,000 in rehab may have an ARV of $220,000. At 75% LTV, the refi loan would be $165,000 - recovering most of the invested capital.