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70% Rule Calculator

The flipper's starting point. Enter ARV and estimated rehab — we'll compute the maximum allowable offer and your projected margin.

Maximum Allowable Offer

$220,000

↑ Strong

After-repair value (ARV)
USD

Use the lowest of three recent sold comps.

Estimated repair costs
USD

All-in scope, including a 10%–15% contingency.

Projected gross profit
$120,000
Profit % of ARV
30.00%
ARV
$400,000
Repair budget
$60,000
How this is calculated

Max offer = (ARV × 0.70) − Repair costs

The 30% gap covers holding, financing, commissions, slippage, and profit. Wider gap = more margin for surprises.

Validate ARV and rehab with our team

Comps drift fast. We'll review your comp set, sanity-check the scope, and stress-test the exit. Free 30-minute consult.

Send my numbers to the team
FAQ

Common questions

Why 70%?

The 30% gap covers everything that isn't price or rehab: holding costs, financing, agent commissions on the sale, transfer taxes, staging, slippage, and your profit. In a normal market, that 30% leaves a flipper a roughly 10%–15% net margin once everything settles.

Does the 70% rule apply to BRRRR?

It's a useful starting point but not a hard rule. BRRRR investors often go up to 75%–80% of ARV because they refinance and hold instead of selling, they don't pay agent commissions or capital-gains tax on exit. Adjust the multiplier to your actual exit costs.

When should I deviate from 70%?

Hot markets with rapid appreciation push experienced flippers to 75%–80%. Slow markets, declining markets, or unfamiliar neighborhoods should pull you down to 65% or even 60%. Capital cost matters too, if you're using hard money at 12%, your safety margin needs to be wider.

What's a realistic profit margin?

Net 10%–15% of ARV is solid for a single-family flip. Above 20% usually means you got a wholesale deal or did the rehab dramatically below market. Below 8%, one bad surprise can wipe out the trade, slow sale, scope creep, or a missed permit.
Need help interpreting your numbers?

Ready to pressure-test your flip with our acquisitions team?

ARV and rehab numbers are where flips live or die. We'll review your comps, scope, and exit assumptions before you write the offer.