If you are a rehabber, one of the skills you need is to be able to estimate your rehab’s after-repair value accurately. It’s essential in understanding your deal’s profit potential. Make a mistake, rely on wishful thinking or count on appreciation and – poof! – you are lucky to get out by the skin of your teeth. If you are planning to work with a hard money lender, your rehab’s after-repair value (ARV) becomes a part of underwriting. Hard money lenders base their loans on the after-repair value and not on its purchase price or as-is value. So another reason to know how to estimate your rehab’s ARV correctly is to know how much of a loan you can qualify for.