The 70% Rule is a general rule of thumb to see if a fix and flip deal is worth pursuing. It will help you quickly assess the maximum purchase price for a wholesale deal.
Most Popular FREE Investing Calculators
Multi-Family Investment Calculator Cash on Cash Calculator Single Family Cash Flow Calculator
The 70% Rule in Flipping Houses states that an investor should not pay more than 70% of the After Repair Value, minus repairs, for a home to make enough money from the flip to be worth it. If a property is worth $200,000 after you fix it up, then the 70% Rule states that your offer should be $140,000 less any repairs you will need to put into the property.
This rule of thumb is to keep a rehabber from paying no more than 70% of the after repair value, minus any repair costs or and desired profit.
| After Repair Value | Repairs Needed | Extra Profit Needed |
| Estimated Purchase Price |