Carrying and Transaction Costs

[Xuan "Swan" Redding]

Hi BP,

Need clarification - for a flip project - is the carrying costs and cost of resale included in the "Repairs Costs" deducted in The 70% Rule?

:) Thanks!

[J Scott]

In theory, the fixed costs of the project (purchase costs, holding costs, selling costs) are contained in the other 30%, along with the profit. The 70% is the purchase price plus rehab costs.