Under the 70% rule, what Target %s are fix and flippers using in houston, TX?

[Tim Tafel]

65%, 70%, 75%, 85%?

[Daniel Tanasa]

Most of the Flippers want to be around 75% of ARV minus repair cost or lower. But that depends on the level of rehab, price point and so on.

[Lauren Cutchen]

Unless your all cash (no HML or PML), the 70% rule minus rehab is still my go-to rule of thumb. If you're cash, you have more flexibility. All in all, everything I analyze from wholesalers, independent and large, are only giving about a $20,000 profit. And that's not enough and the risk is too high at that margin for starter homes. We are sourcing our own deals at this point to get a better advantage.