In this video—part two of three—review the ARV calculator worksheet, how to use it, and how to interpret the results.
- [Instructor] All right, so it has some new ones here. … Okay, great. … And we're looking at three-bed, two-bath, right? … You see something like this, that's similar, … you can go click and open it in a new tab, okay? … I have one already open for there but. … Just look through, what you want to look through initially, … just look at the bedrooms, and the baths and the size. … If that matches, or is pretty close, then open it up. … Let's take a look at one of the listings right now. … We're going to see something like this. … This one is, it's going to give you the address, … the square footage, the sold price, the sold date, … and information like the year that it's built, … and the lot size, okay? … Some of these things are going to affect … the ultimate sale price, right? … Things that have a bigger lot, … that have larger square footage, … tend to be a little bit more expensive. … Things that are newer tend to be better, … just on all things equal. … When you have this information, …
- 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.