MA Target Towns ARV Button

NH Target Towns ARV

Wholesalers & Birddogs: If you would like to submit a wholesale deal or lead, please review AARE’s criteria.



We typically will only purchase homes that meet the following guidelines:
1. Residential, 1 to 4-unit homes
2. Purchase Price is no more than up to 75% of after-repaired value (this ranges from 60%, depending on market cycle and town).
3. In select, “sell-through” towns in Massachusetts & New Hampshire (these are towns that typically have a “days on market” ratio of under 6 months).
4. Are in good school districts.
5. Have no significant DEP / Environmental Issues

1. 6 units to 150 Units Considered, currently all along the East Coast states (Maine to Florida), PA & OH
2. B, C or D class buildings located in B or C class areas
3. Mixed Use considered, but only if majority is multifamily
4. Area must have vacancy rate no greater than 10%
5. Asset must have at least one “value-add” to increase value
6. Target cap (pre-stabilization) is 10%, 12% & 15% (market-dependent)
7. Target cap (post-stabilization) is 6%, 8%, & 10% (market-dependent)
8. DSCR (when stabilized) cannot be lower than 1.25
9. Parking must be available, or an option for parking is available
10. Have no significant or lasting DEP / Environmental Issues

For us to consider your deal, you need to provide the following information:

  1. What the house will sell for after it has been rehabbed (ARV).
  2. The total rehab cost.

Calculating AARE’s Maximum Allowable Offer (MAO)

Maximum Allowable Offer 70% RULE

ARV x 0.7 (70%) – Rehab = MAO


$600K ARV house that needs $100K in rehab

$600K * 0.7 = 420K

$420K – $100K = $320K Maximum Allowable Offer (MAO)

Finding the After-Repaired Value (ARV)

Use valid comps from your investor-friendly agent.  (At least 3-5 preferred).

AARE Solutions criteria:

  • Within 0.5 miles
  • Similar Style
  • Same # Bedrooms
  • Same # Baths
  • +/- 200 sq ft
  • +/- 10 years in age
  • Comps from last 3 months
  • **Adjustments made for differentials

Remember, if it works with our numbers, that is all we care about.

Any difference you negotiate goes to YOU!