70% Rule
A quick screen for flips and wholesale deals: pay no more than 70% of ARV minus repair costs. It bakes a profit and risk buffer into one number.
The 70% rule is the shorthand most investors use to size a first offer: maximum offer = (ARV × 70%) − estimated repairs. The 30% gap is meant to absorb holding costs, selling costs, closing costs, and profit, so a deal that pencils at 70% usually survives the surprises that follow.
It's a screen, not a contract — strong markets and light rehabs can justify 75% or higher, while heavy, uncertain projects argue for 65% or less. Treated as a starting filter rather than gospel, it keeps offer volume fast without letting a thin deal slip through.
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