ARV (After-Repair Value)
The estimated market value of a property after planned renovations are complete. ARV is usually derived from comparable sales of already-renovated properties nearby. Flippers and BRRRR investors work backward from ARV to set a maximum purchase price and renovation budget.
Related terms
70% Rule
A screening guideline for house flips: pay no more than 70% of a property’s after-repair value, minus the estimated repair costs. The 30% margin is meant to absorb holding costs, selling costs, and profit. It is a rule of thumb, not a law — workable margins vary with price point and market conditions.
Comps (Comparable Sales)
Recently sold properties similar to a subject property in location, size, age, and condition, used to estimate what the subject is worth. Appraisers, agents, and investors adjust comp prices up or down for differences before settling on a value. The quality of a valuation is only as good as the comps behind it.
BRRRR
Buy, Rehab, Rent, Refinance, Repeat — a strategy where an investor buys a property below market value, renovates it, places a tenant, then refinances against the new appraised value to recover much of the invested cash before repeating the cycle. The refinance step depends on the post-rehab appraisal and current lending terms, which is where the strategy carries most of its risk.