Investors- Are you still using the 70% rule in this market?

[Angelika Koscinski]

Hi everyone, I am an agent based in central and northern NJ and am curious about how investors are navigating the current real estate market. With the substantial increase in home prices across the state, it has become more challenging to find sound investment options for my clients. Typically, I've used the 70% MAO rule, but given the current market conditions, I'm wondering if adjusting this rule to 80% is more appropriate?

If anyone is in NJ or a similar real estate market, I'd love to hear what criteria you are using to evaluate your deals. Additionally, for those involved in new home construction, what price per square foot are you seeing recently?

Thanks in advance!