Free tools
70% Rule Calculator
The flipper's starting point. Enter ARV and estimated rehab — we'll compute the maximum allowable offer and your projected margin.
Your numbers
Standard fix-and-flip math. Adjust to your market.
Maximum allowable offer
$220,000Strong
- 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.
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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.
No slides. No sales pitch. Just a focused strategy call.