Running the numbers on a Burr Ridge flip can feel like balancing on a tightrope. You want a strong resale price, a realistic rehab budget, and a clear picture of monthly carry before you ever write an offer. If you miss one of those, profits shrink fast. In this guide, you’ll learn how to estimate ARV with confidence, build a scope and budget that matches the neighborhood, and calculate carrying costs so your timeline and cash flow stay on track. Let’s dive in.
ARV in Burr Ridge: Get it right
ARV is the price your home should sell for after your planned renovations. In Burr Ridge, you want comps from the same micro-neighborhood or an adjacent one that buyers see as equivalent. Pull closed, renovated sales first and verify details with local MLS data. Public portals can give quick snapshots, but you should confirm against MLS records.
Select 3–6 closed comps that match key factors like lot size band, bed and bath count, finished basement, age and condition, garage setup, and recent upgrades. In a steady market, focus on the last 3–6 months of sales. If activity is slower, extend to 6–12 months and adjust for market changes.
Price-per-square-foot helps with calibration, but do not rely on it alone. In Burr Ridge, premium finishes, outdoor living, and floor plan quality can shift price meaningfully. Make sure you adjust for condition and layout, not just size.
How to adjust comps
- Adjust for square footage, bedrooms and baths, finished basement, lot size, garage capacity, and major upgrades.
- Consider Burr Ridge value drivers like larger lots, higher-end finishes, and usable outdoor space.
- Document each adjustment with a dollar figure or percentage so your ARV is transparent.
- Build sensitivity bands to reflect market momentum:
- Base ARV: your best-supported number from comps.
- Conservative ARV: base minus 5–10 percent.
- Optimistic ARV: base plus 5 percent.
Build a rehab budget that fits the ARV
Start with a clear scope that matches your target buyer and comp set. In many Burr Ridge neighborhoods, buyers expect updated kitchens and primary suites, quality flooring and trim, and well-finished outdoor areas. Match your specs to the ARV tier you are targeting.
Structure your budget with hard costs, soft costs, carry, selling costs, and a contingency reserve. Keep each line item specific so you can track bids and changes.
Typical line items to include
- Demolition and debris removal
- Structural repairs (foundation, framing, roof)
- HVAC, electrical, and plumbing (rough and finish)
- Windows, doors, exterior siding and paint, roofing
- Kitchens and bathrooms (cabinets, counters, fixtures, tile, appliances)
- Flooring, trim, interior doors, paint
- Insulation and energy upgrades
- Driveway, landscaping, and curb appeal
- Permits, design/engineering, and inspections
- Lighting, hardware, and finishes
- Final cleaning, staging, and professional photos
Sourcing local costs
Get 2–3 detailed bids per trade from DuPage County contractors. Regional cost references can help for rough ranges, but always validate locally. Use fixed-price contracts when possible, or a clear unit price with a defined change-order process. Set schedules, milestones, and holdbacks, and collect lien waivers and proof of insurance.
Plan a proper contingency
- Light cosmetic: 5–10 percent of hard costs
- Standard rehab: 10–15 percent
- Gut or structural: 15–25 percent or more
Older homes and unknown conditions call for higher reserves. Update your contingency as you open walls and learn more.
Calculate carry in DuPage County
Carry is what you spend while you own the property before resale. It includes financing, taxes, insurance, utilities, HOA dues, and upkeep. Because carry is time-based, an accurate timeline is just as important as your monthly estimate.
Core carrying costs to include:
- Financing interest and fees (interest-only is common for short-term loans)
- Property taxes (check parcel history and account for possible reassessment after major improvements)
- Insurance and builder’s risk where appropriate
- Gas, electric, water and sewer, trash, security
- Lawn care and snow removal
- HOA or subdivision fees if applicable
- Routine maintenance and minor repairs
- Property management or periodic check-ins if vacant
Use a simple monthly model:
- Monthly interest = outstanding loan balance × (annual interest rate ÷ 12)
- Total Carry = (Monthly Loan Interest + Monthly Property Tax + Monthly Insurance + Utilities + HOA + Maintenance + Management) × Holding Months
Pad your timeline by 25–50 percent to cover permit delays, weather, material lead times, and market shifts.
Selling costs to include
Count total market commission, title and closing fees, staging and marketing, and any seller concessions. In many cases, total commissions in the region are around 5–6 percent of the sale price, but always underwrite to your actual listing plan.
Financing choices and impact
Short-term hard-money or private loans can fund purchase and rehab quickly, but they typically have higher rates, points, and interest-only payments. Bank rehab or construction products may be available, often with stricter requirements. Cash reduces interest carry but introduces opportunity cost.
Underwrite with the actual terms you expect to use: rate, points, loan-to-cost limits, draw schedule, retainage, and any prepayment penalties. Get lender pre-approval on your scope and draws before you finalize your offer.
Permits and compliance in Burr Ridge
Confirm required permits with the Village of Burr Ridge for structural, electrical, plumbing, HVAC, roofing, siding, and exterior changes. Add plan review and inspection time to your schedule. Many neighborhoods have HOA covenants or architecture review, so check exterior standards for finishes, fences, driveways, and landscaping.
Significant improvements may lead to reassessment. Review parcel history and contact the county assessor’s office for process and timing. Confirm any county or municipal transfer taxes and documentary stamp requirements before closing.
Verify licenses and insurance for your contractors, collect W-9s, and manage lien waivers. Order title early to uncover easements or liens that could slow resale.
Profit targets and formulas
Many investors start with the 70 percent rule as a quick screen:
- Maximum Purchase Price = 0.70 × ARV − Estimated Rehab Cost
Treat it as a rough filter. Your full underwriting should include every cost so you can forecast net profit and ROI.
- Total Project Cost = Purchase Price + Rehab Hard Costs + Contingency + Soft Costs + Carrying Costs + Selling Costs
- Net Profit = ARV − Total Project Cost
Run sensitivity cases: lower ARV by 5–10 percent and extend the hold by 25–50 percent. If your profit still meets your target, you have a stronger deal.
Risk management and timeline control
Common risks include hidden conditions, contractor delays, permit corrections, market slowdowns, and funding hiccups. Mitigate with thorough pre-purchase inspections, conservative contingencies, fixed-price bids where possible, and early ordering of long-lead items. Lock short-term financing or secure backup options.
Create a timeline with clear milestones: purchase, start, rough-in complete, inspections, finishes, staging, list, and close. Track weekly progress and keep a buffer.
Buyer preferences and resale in Burr Ridge
Burr Ridge buyers often look for updated kitchens and primary suites, quality millwork and flooring, organized storage or mudrooms, and well-designed outdoor spaces. Energy-efficient systems and curb appeal matter, especially on larger lots. Match your finish level to the comps that support your ARV, and avoid overspending on features that push beyond the neighborhood ceiling.
Stage the home and invest in professional photos. Price competitively within the active set, leaving room for negotiation without losing momentum.
Quick underwriting checklist
- Market and ARV
- Pull 3–6 renovated comps within the same micro-neighborhood and document adjustments.
- Purchase and title
- Confirm purchase price, closing costs, and a clear title search for liens and easements.
- Inspections and due diligence
- Full home inspection, sewer scope, termite and mechanical checks; structural or engineering if indicated.
- Rehab plan and budget
- Itemized hard costs, soft costs, and 2–3 bids per trade; set contingency percentage based on scope.
- Permits and approvals
- Confirm required permits with the Village and estimate review and inspection time.
- Financing and carry
- Lock terms (rate, points, draws) and calculate monthly carry with a timeline cushion.
- Schedule and milestones
- Create a realistic timeline with float for delays and inspections.
- Exit strategy
- Plan pricing, staging, and a backup option if the listing underperforms.
- Tax and legal
- Consult a CPA on expected tax treatment and ensure contractor compliance and lien waivers.
- Final check
- Re-run numbers at 5–10 percent lower ARV and 25–50 percent longer hold.
Partner with a renovation-first local advisor
If you want hands-on help aligning scope, budget, and resale, work with a local broker who understands both underwriting and execution. As a renovation-focused agent with a track record across the DuPage Corridor, we pair MLS-backed pricing with project management, targeted improvements, and concierge-level listing prep to reduce friction and protect your margin.
Ready to pressure-test a Burr Ridge deal or map a renovation plan for your sale? Connect with Johnny Kloster to run the numbers and build a timeline that fits your goals.
FAQs
What is ARV in a Burr Ridge flip?
- ARV is the projected sale price after planned renovations, based on recent, comparable renovated sales in the same or adjacent micro-neighborhood.
How do I choose comps in Burr Ridge?
- Use 3–6 recent, renovated closed sales with similar beds, baths, square footage, lot size, and finishes, adjusting for differences and documenting each change.
How much contingency should I budget?
- Plan 5–10 percent for light cosmetic work, 10–15 percent for standard rehabs, and 15–25 percent or more for gut or structural projects.
What carrying costs should I expect?
- Include loan interest and points, property taxes, insurance or builder’s risk, utilities, lawn and snow care, HOA dues if any, routine maintenance, and management if vacant.
How do permits affect my timeline in Burr Ridge?
- The Village requires permits for many scopes and inspections can add time, so confirm requirements early and add review and inspection buffers to your schedule.
Which financing is best for a flip?
- Short-term hard-money or private loans offer speed but higher costs, bank rehab products can work with more requirements, and cash lowers interest carry but has opportunity cost.
