What Is The 70% Rule in House Flipping? 🤔🏡💰 (Video by Easy Street Capital)

[Robin Simon]

What is the 70% Rule in House Flipping?

The seventy percent rule is a quick rule of thumb for fix and flips to help investors determine the maximum amount they should pay (or be willing to pay) to buy a property.

How do you calculate it?

Its seventy percent times the ARV – or After Repaired Value – the estimated value of the property that INCLUDES planned costs for renovations. Flippers make their money by creating value more than the costs – and this is a key rule to make sure a potential fix and flip is worth it and you don't overpay.

Using this rule when shopping for flappable properties is great for your toolkit, and makes buying in bidding systems such as foreclosure auctions, a breeze!