ARV is so important to flippers, but what is it?
If you are an active real estate investor, it is likely you have rental properties.
When getting your rental properties to cash flow, you need to save money whenever you can. If you are just starting out, it is possible to do quite a few things yourself to save on your maintenance costs. Below are some of the things we see real estate investors self perform:
Drywall Patches Between Tenants
(while certainly not a fun gig, if you have the patience, it can save you quite a bit of money)
Mini Bathroom Remodels
If you’re looking at ways that you could possibly look to increase rental rates, consider some upgrades. A little can go a long way to what a renter is seeing.
Renting a carpet cleaning machine from a local vacuum store or big box like Home Depot or Loewe’s.
Curb Appeal like adding mulch can make your rental property more desirable to tenants
Replacing Light Fixtures
We hope that these ideas get your mind working to see how you could possibly save money by self performing some improvements to your rental properties between renters.
This property was purchased at the end of June 2018 for $195k by an experienced flipper. This borrower requested a hard money loan amount of $180k. Rehab for the property was $35k. The flip took 4 months.
Source - Referral to Borrower
Status - Estate
Condition - Poor / Hoarder Home / Arson Property - see below before picture
Title took a good deal of time to close because several deceased persons were on title. All parties of the transaction had to be patient to await clean title from seller’s representatives.
Gas and Electric had been off at the home for a significant amount of time that Xcel required the borrower to obtain new service as if the home was newly constructed. This line item was over budget as that was unforeseen for the borrower.