The ARV formula that the appraiser will use is quite simple. They use the purchase price and then they add the added value as previously described.
(Purchase Price) + (Value From Renovations) = After Repair Value
The 70% Rule
The 70% rule is a guideline in the real estate investing business that states no bid price at the beginning of a project should exceed 70% of the ARV minus estimated repair costs.
(ARV x 70%) – Estimated Repairs = Maximum Purchase Target
This is a rule of thumb that real estate investors should follow which will allow them to make a 30% return on their investment (ROI).
Rehab Financial uses a rule of 70% when it comes to lending on a project. Once RFG receives the ARV from the appraiser, we calculate 70% to determine the maximum that we are willing to lend.
After Repair Value x 70% = Maximum Loan Amount
温室小玛茄 发表于 2021-06-17 00:42
这个方法很好的。我积累的很多房子是这样，放进去的现金很少。
比如14万现金买，cash out refinancing for 12万，现在市价27万，租金$1450, ,15年的贷款，也就3、4年的功夫，积累了不少EQUITY。
还有25万现金，花个3万左右修理，贷款24万，市值大盖45万。只是每个月差不多租金和贷款持平，因为靠近市区价格太贵。 等等。。
