336: Rookie Reply: What is ARV in Real Estate & Why It’s Crucial to Get Right

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 4 November 2023

⏱️ 51 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

What is ARV in real estate? You’ve heard the term before but might not know what it means. ARV stands for after repair value, the value of a property AFTER you rehab, renovate, or upgrade it. While this metric may seem like something that only house flippers should care about, ARV is something that ANY rental property investor should pay close attention to because if you get it wrong, you could lose tens of thousands of dollars. In this Rookie Reply, we’ll show you how to estimate ARV and what common mistakes rookies make when calculating this crucial number. Then we answer how to write off repairs vs. CapEx (capital expenditures) on your taxes, and Ashley’s easy answer when you don’t know the difference between the two! Plus, why you should ALWAYS check your breakers when something goes wrong. If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: ARV (after repair value) explained and why it’s so useful when buying rental property How to estimate ARV and pull comps from nearby sold properties Rookie mistake you might make when estimating ARV and how to know your calculations are correct When ARV is (and isn’t) important, plus, why purchase price isn’t everything CapEx (capital expenditures) vs. repairs and how to write these common expenses off Why Ashley can’t ever just relax on the weekends And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Ask Us Your Investing Question Apply to Be a Guest on the “Real Estate Rookie” Podcast Hear Our Recent Episode with Pace Morby EZ Calculator Invelo LandGlide onX Hunt Privy PropStream Zillow Follow Grant Warrington, the Apartment Investor Expert, on Instagram Books Mentioned in the Show: Real Estate Rookie by Ashley Kehr & Tony Robinson Check the full show notes here: https://www.biggerpockets.com/blog/rookie-336 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is Real Estate Rookie episode 336.
0:04.4	My name is Ashley Kerr, and I am here with my co-host Tony J Robinson.
0:08.6	And welcome to the Real Estate Rookie podcast, where every week, twice a week
0:12.1	we bring you the inspiration, motivation, and stories
0:15.0	you need to hear to kick out your investing journey.
0:17.0	And today, we're doing a Ricky reply,
0:18.8	which means we're answering questions from you,
0:20.9	our audience.
0:21.6	And Ashley and I love doing these episodes
0:24.0	because we get to talk to you guys.
0:25.2	We get to answer the questions that are most pressing in your brains
0:28.0	and your minds.
0:28.9	And today we talk a lot about ARV.
0:31.6	And I'm not even going to tell you what that is yet because you guys need to
0:34.3	listen through we talk about the pitfalls of a r v how to make sure you're doing it the right
0:38.3	way common mistakes we see new investors make and pretty much just give you like a masterclass
0:41.7	on all things ARV.
0:44.0	So then we're going to talk about repairs and maintenance and capital expenditures, what the
0:49.3	difference is, what those things are and different ways to navigate it.
0:53.2	Plus we'll tell you a couple personal stories
0:55.2	of things that are going on with us
0:56.7	and especially dealing with it on your short-term rentals.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.