What Is ARV and Why Does It Matter?

After Repair Value (ARV) is the estimated market value of a property after all planned renovations are complete. It is the single most important number in a fix-and-flip deal — every other figure flows from it. Overestimate ARV and you'll overpay for the property. Underestimate it and you'll leave money on the table or pass on a great deal.

The 70% Rule: A Starting Point, Not a Final Answer

The 70% rule states that your Maximum Allowable Offer (MAO) should be no more than 70% of ARV minus your estimated rehab costs:

MAO = (ARV × 0.70) − Rehab Costs

For example, if a property has an ARV of $200,000 and needs $40,000 in repairs, your MAO would be ($200,000 × 0.70) − $40,000 = $100,000.

The 70% rule is a quick filter — useful for screening deals in seconds. But it doesn't account for holding costs, financing costs, or local market conditions. Experienced investors treat it as a ceiling, not a target.

How to Calculate ARV Accurately

A reliable ARV calculation requires pulling comparable sales (comps) from the MLS or a data platform like PropStream. Follow these steps:

  1. Define your search radius. Start within 0.5 miles. In dense urban areas, tighten to 0.25 miles. In rural areas, you may need to expand to 1–2 miles.
  2. Filter by time. Use sales from the last 90 days. In slow markets, extend to 180 days but weight recent sales more heavily.
  3. Match property characteristics. Look for homes with similar square footage (±15%), bedroom/bathroom count, lot size, age, and construction type.
  4. Adjust for condition. If your subject property will be fully renovated and a comp was sold in average condition, add a condition adjustment — typically $5–$15 per square foot depending on market.
  5. Calculate price per square foot. Average the adjusted comp prices per square foot, then multiply by your subject property's square footage.

Neighborhood-Specific Adjustments

Not all neighborhoods are equal, even within the same zip code. Pay attention to:

  • School district boundaries — A property on the "good school" side of a boundary can command a 5–15% premium.
  • Street position — Corner lots, cul-de-sacs, and backing to green space typically add value. Busy roads or commercial adjacency subtract.
  • Micro-market momentum — Is the neighborhood appreciating, stable, or declining? Check DOM (days on market) trends.

Tools That Make ARV Faster

Manually pulling comps takes time. These tools automate much of the process:

  • DealCheck — Enter the address and it pulls comparable sales and generates an ARV estimate. Best for quick screening.
  • PropStream — The most comprehensive comp data available outside the MLS. Includes off-market and distressed sales.
  • Mashvisor — Better for rental markets but includes a solid ARV estimator for SFR properties.

The Bottom Line

ARV is part science, part art. Use the 70% rule to screen deals quickly, then do a proper comp analysis before making any offer. The investors who consistently win in competitive markets are the ones who can calculate ARV faster and more accurately than everyone else.