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What does it mean if my Arrived Valuation is down?

Korin Hedlund avatar
Written by Korin Hedlund
Updated over 2 weeks ago

It’s not uncommon for a property’s valuation to fall below the initial $10/share, especially in the early stages of ownership. This can happen for a few reasons:

  • Lower cash reserves due to maintenance, vacancy, or loan servicing

  • Initial property improvements or renovation expenses

  • Market-based declines in third-party property value estimates

  • Prorated impact of upfront investment fees

These early costs are temporary. Over time, property appreciation and rental income are expected to drive long-term returns.

Valuations can also reveal performance trends across:

  • Geographies (some markets favor appreciation, others favor income)

  • Property types (performance timelines and cost structures differ)

  • Asset strategies (e.g., single family residential rentals vs. vacation rental assets)

Investors can use this data to make informed decisions about diversifying across different properties and markets.

Real estate moves slower than public markets but often more predictably. Property values tend to appreciate gradually, especially when supported by strong rental income. By holding for multiple years and reinvesting consistently, investors can position themselves to benefit from:

  • Long-term property appreciation

  • Monthly dividend income

  • Compounding returns across a diversified portfolio

To learn more about the Arrived Valuation, check out the resource below:

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