After Repair Value (ARV): How to Calculate ARV for BRRRR and Flips
After repair value (ARV) is the estimated market value of a property once renovations are complete. Learn how to calculate ARV from comparable sales and use it for BRRRR and flip offers.
By Michael Torres, Real Estate Investment Analyst · Last reviewed: July 29, 2026 · 8 min read
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What Is After Repair Value (ARV)?
After repair value (ARV) is the estimated market value of a property after all planned renovations are finished. It answers a single question: once the work is done, what will this property realistically sell or appraise for?
ARV is the anchor number for BRRRR investing and house flipping. The maximum offer, the rehab budget, the refinance loan amount, and the projected profit all trace back to an accurate ARV. If the ARV is wrong, every downstream number is wrong.
How to Calculate ARV
ARV = Average Adjusted Price per Sq Ft of Comps x Subject Property Sq Ft
The most reliable way to calculate ARV is the sales comparison approach. Find recently sold properties similar to the subject property in its renovated condition, then use their sale prices to estimate value.
A common shortcut is price per square foot: take the adjusted sale price of each comparable, divide by its square footage, average the results, and multiply by the subject property size. Adjust for differences in condition, lot size, garage, and bedroom or bathroom count.
Choosing Good Comparable Sales
- Use sold comps, not active listings. Asking prices are opinions; closed sales are evidence.
- Prefer sales within the last 3 to 6 months in the same neighborhood.
- Stay within roughly 0.5 miles and similar square footage, ideally within 20%.
- Match property type, bedroom and bathroom count, and finish level after renovation.
- Use at least three to five comps so one outlier does not distort the estimate.
Worked Example
Suppose three renovated comps nearby sold for $315,000 (1,500 sq ft), $330,000 (1,600 sq ft), and $342,000 (1,650 sq ft). Their prices per square foot are about $210, $206, and $207, averaging roughly $208.
If the subject property is 1,550 square feet, the estimated ARV is 1,550 x $208, or about $322,000. A BRRRR or flip investor would then work backward from this ARV to set a maximum purchase price.
How ARV Drives Your Offer
In the 70% rule, the maximum offer equals ARV multiplied by 0.70, minus estimated repair costs. Using the $322,000 ARV above and a $45,000 rehab budget, the maximum offer would be about $180,400.
In BRRRR, the refinance lender applies a loan-to-value limit to the ARV, often around 70% to 75%. A higher, well-supported ARV means more cash returned at refinance, so a defensible ARV is what makes the strategy repeatable.
Frequently Asked Questions
How accurate is an ARV estimate?
An ARV built from three to five recent, nearby, similar sold comps is usually a solid estimate, but it is still an opinion of value. A licensed appraiser or a local agent broker price opinion can confirm it before you commit capital.
What is the difference between ARV and current value?
Current value is what the property is worth in its present, often distressed condition. ARV is what it will be worth after renovations. The gap between the two, minus rehab cost and holding costs, is where flip and BRRRR profit comes from.
Should ARV use active listings or sold comps?
Use sold comps. Active listings show what sellers hope to get, not what buyers actually paid. Closed sales in the last few months are the strongest evidence of market value.
Michael Torres · Real Estate Investment Analyst, Austin, TX
Michael has spent more than a decade underwriting single-family and small multifamily rentals. He writes about cash flow analysis, cap rate, and how investors should stress test a deal before making an offer.
Educational Disclaimer
All calculations are estimates for educational and planning purposes only. PropertyFlowTools.com does not provide financial, tax, legal, lending, or investment advice. Verify calculations and consult qualified professionals before making property or financing decisions.