Deal Metrics
What is ARV (After-Repair Value)?
Learn what ARV means and why DealPrism treats it as a user-entered assumption, not a calculated output.
Answer
ARV stands for After-Repair Value. It's an estimate of what a property will be worth once renovations are complete - used primarily in BRRRR analysis to determine how much you can borrow against the improved value.
ARV is not a number DealPrism calculates or estimates. It requires analysis of recent comparable sales (comps) in the specific neighborhood - properties of similar size, condition, and features that have sold recently. The most reliable way to get an ARV estimate is from a local appraiser or an experienced real estate agent who knows the market.
Why ARV matters in BRRRR: your refinance loan amount is based on a percentage of ARV - typically 70-80% for investment properties. If your ARV estimate is too high, the refinance may fall short of what you need to recycle your capital, and you may not find out until you're already several months into a rehab.
In DealPrism, ARV is always displayed as a user-entered assumption, not a calculated result. The output section clearly separates what you entered from what the engine computed.
Related guides
Related questions
See how this plays out on a real deal
DealPrism helps you connect the concept to live property assumptions, scenario changes, and calculated outputs.
Analyze your own dealDealPrism provides educational analysis based on available data and user assumptions. Results are estimates and may change if rent, taxes, insurance, financing, or other inputs are updated. This content is not financial, legal, tax, or investment advice.