Clarification on 70% rule

[Richard Redding]

We're about to jump into our first flipping venture. We understand the basics of the 70% rule but have one major question we aren't sure about.

We understand that we take ARV and multiply by 70% and this gives us our project budget. We know that from that 70% we subtract out our rehab and repair costs and this gives us our offer price.

The question is what about the holding costs, commissions, closing costs, etc? Does that come out of our profit margin, or do we include all that in our rehab/repair costs estimation, thus lowering our offer price?

Thanks gang!