Property fundamentals
ARV (After-Repair Value)
What the property would sell for once rehab is complete. The most important — and most-mis-estimated — input in any BRRRR or flip.
Example
A $80,000 distressed property with $30,000 of rehab and an ARV of $150,000 has equity creation of $40,000 ($150k − $80k − $30k).
Why ARV (After-Repair Value) matters
ARV is a high-sensitivity assumption in BRRRR and flip plans. Build it from relevant closed comps and test multiple downside values; there is no reliable market-wide appraisal haircut that substitutes for property-specific evidence.
How to check ARV (After-Repair Value) before you rely on it
Build it from closed sales, not active listings. Use renovated properties of similar size, age, and layout within the same neighborhood that sold in the last six months, and adjust for differences you can point to. Ask an agent or appraiser who works that market to check your comparables. Then underwrite the case where the value comes in ten percent lower; if the plan fails there, the margin is the problem, not the estimate.
Related terms
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Where ARV (After-Repair Value) shows up in TrueCap
Property fundamentals are the facts you enter or confirm about the building itself — price, units, bedrooms, square footage — and the analyzer keeps them separate from assumptions. They decide which benchmarks apply (a 3-bedroom rent benchmark, for example) and appear at the top of every results view and memo so the reader knows exactly what was analyzed.