Fix & Flip
What Is ARV?
Learn how after-repair value affects fix & flip leverage and the cash required for a project.
Immediate answer
ARV, or after-repair value, is the supported estimate of what an investment property may be worth after the planned renovation is complete.
How ARV Affects the Loan
Fix & flip financing is limited not only by project cost, but also by the relationship between the loan and supported ARV. A lower appraisal can reduce available proceeds.
What Supports ARV
- Relevant comparable sales
- Property size and layout
- Renovation scope and finish level
- Market and neighborhood
- Appraiser review