In this video—part one of three—review the ARV calculator worksheet, how to use it, and how to interpret the results.
- [Instructor] Hey, welcome back to the course. … Now, this lecture, we are going to do the ARV calculation. … So you're going to see something like this … on your worksheets here, we want to go … to the ARV Calc worksheet right here, … the second worksheet, and highlighted yellow. … Now, you're going to see some numbers … that are in these yellow boxes. … They're going to be part of my example right now. … All I want you to do, if you're going to be using this, … is just to clear it out or download the blank version … of the Excel spreadsheet here. … And these blank ones are going to have a bunch of errors … because, well, there's no numbers here … to flow into the calculations yet. … These yellow highlighted cells are what you're going … to have to put in in order for you to do the calculations. … So for this exercise, what we're going to be doing is, … we're going to be going to a website called Zillow.com. … Now, I'm going to use this for the example. … For pretty much everybody in the US, …
- Name the formula used to calculate the MAO from the AVR.
- Summarize the 70% rule.
- Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
- Describe the factors in an AVR estimate.
- Cite the formulas that are helpful when pitching to a flip investor buyer.
- Explain the difference between recently sold comps and rental comps.