70% ARV Pointless?

[Brandon Sturgill]

I am struggling with the concept of 70% ARV for SFH investing. Is there something more to this? It seems to me a lot of SFH investors are not disclosing the entirety of costs associated with their investment. This is a reasonable example of using the 70% ARV formula where I live and it is a seemingly impossibe way of investing: SFH $60,200 purchase price (70% ARV) ARV $86,000 Fixed Rehab Costs $12,000 Entrance Costs (Closing Costs/Lender Fees) $3,000 Holding Costs $4,000 (150-days) Exist Costs (Realtor Fees/Buyers Closing) $5,000 Total Costs Including Purchase Price $84,200 ARV-Total Costs (Profit) $1,800 With this strategy, I would need to be looking closer to 50% ARV to profit.?

[Arthur Banks]

Following your numbers, your purchase price should be $36,200

$86,200 (ARV) * 70% = $60,200 - all your costs ($24,000) = $36,200

Someone please correct me if my math is off.