BP 70% Rule????

[Scot Amato]

Hi. Is there something I am not seeing in the BP 70% calculator? It seems off a bit! 

[Hattie Dizmond]

You're going to have to be a bit more specific than that.  I don't understand what your actually question is.

The 70% rule is a rule of thumb, and it is widely accepted throughout the circles of professional investors I've met and talked to.

(ARV - Repair Cost) * 70% = Maximum Allowable Offer

You can go with a higher percentage, if you're doing buy & hold.  There are also certain markets/neighborhoods, where property values are severely depressed, that you may want to go with a lower % as a general practice.  However, 70% is a good general target.

Again, what's your real question?