Does the 70 percent rule always apply to a good deal?

[Elliot Weldon]

I recently purchased a home for 313k in a Minneapolis suburb. Great neighborhood and I wasn’t thinking of flipping it until I moved in and realized how nice the home could be.

I am thinking that with 60k (higher end of estimate) of work the home would be worth 480-500k in the Summer.

My question is, is the 70 percent rule outdated? At 313k + 60k I’m at roughly 385k which doesn’t quite make the 70 percent rule. But in my opinion I got extremely lucky with the purchase price and am trying to figure out how anybody could find a house that follows the 70 percent rule, at least in Minnesota.

I most likely won’t sell, but am curious. I will look into refinancing, or 1031 exchange if I do sell. Not sure how 1031 exchange works but will find out.

[Patrick Snyder]

@Elliot Weldon

Who cares about rules...money is money, and if you're satisfied with the return, then do what makes sense.

I assume this is currently your primary home? If so, a 1031 won't work, but Consider staying for 2 years so your gain is tax free, up to 250k if you're single and 500k for a couple.