ARV (After Repair Value)

Definition

The projected value of a property after renovations, an educated guess that's frequently less educated than anticipated.

Example Usage

The ARV was calculated at $350,000, assuming all renovations came in on budget, which they didn't.

Origin

Real estate investor terminology

Fun Fact

ARVs are notoriously optimistic, with many investors overestimating by 15-30%.

Source: Real estate investment analysis

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