Definition
After Repair Value—the estimated market value of a property after renovations are completed, used by flippers and lenders to determine how much to invest. It's the number that makes every renovation look profitable in your spreadsheet, before reality intervenes.
Example Usage
The property's ARV should be $425k after we gut the kitchen and bathrooms, assuming we can stay under our $60k renovation budget—narrator: they could not.
Origin
House flipping and hard money lending terminology from the 1990s
Fun Fact
The 70% rule states investors should pay no more than 70% of ARV minus repair costs, a guideline that sounds simple until you're actually standing in a property trying to estimate how much that foundation crack will cost.
Related Terms
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See “ARV” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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