In this video—part three of three—review the ARV calculator worksheet, how to use it, and how to interpret the results.
- [Instructor] But there's two that may not be a good fit … and it's because there might be something wrong … with the data. … You see that they're three bedroom two bath, but look … at the square footage on these, they're super ginormous. … And what's important here with the comps is we're using … a per square foot average to calculate our ARV. … So these are kind of close to each other and all of a sudden … these two are super low right they kind of don't really … make sense and also this one if you look at my ratings … here this one's really beat down really run down, requires … a lot of work so this is not really comparable to your … target property that's going to be after it's repaired right … so I'm going to throw this out. … And the way to throw a comp out is to set zeros for this … line here that says include or not zero means to exclude it. … So watch what happens if I include them, if I put ones … and include them, you see how these estimates right here … this average per square foot estimate goes way down right. …
- 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.