The 70% Rule...does it still work in this market?

[Rashad S.]

Greetings! I wanted to know what you all think about the 70% rule as it pertains to flipping houses.

How do you feel about it in this current market? I live in Atlanta Georgia where the market feels a bit saturated and it’s pretty hard to find deals using the 70% rule. I find myself looking for subcontractors that do very good work, but for cheaper prices, which requires more management from me.

I personally feel like there’s a lot of money being left on the table when you pass up an investment opportunity because it falls slightly below the 70% rule.

Now if you’re getting construction bids done at $12 - $20 per square feet like J and others do, then I’m sure you can go below the 70% rule (by the way how in the world can I get to those numbers for rehab bids!?!? Lol).