ARV, Rehab and Acquisition Criteria Explained
Most disagreements about price are actually disagreements about ARV or scope. Separate the three numbers and the conversation gets short.
Updated 2026-09-05
After-repair value is a comp argument, not an opinion
ARV should be defensible with recent, close, similar sold comparables — same submarket, similar size and story count, similar lot, and a finish level that matches what you intend to deliver. A number without comps behind it is a hope.
Repair estimates fail on scope, not on price
Two contractors rarely differ much on the cost of a shingle. They differ on whether the roof needs decking, whether the panel gets replaced, and whether the foundation needs piers. Ask for scope lines, not a single total.
Acquisition criteria is a policy, not a formula
Percentage-of-ARV rules are shorthand for a return requirement given a holding period, a cost of capital and a risk tolerance. When your capital cost changes, the shorthand should change with it. Tell TKC the return you need and the horizon you accept, not just a percentage.
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Educational information only. Nothing here is legal, tax or financial advice, and nothing here promises a buyer, a closing, a joint venture, a project or compensation.