70% Rule Fix and Flip Calculator
Calculate the Maximum Allowable Offer (MAO) for real estate fix and flip investments using the industry standard 70% rule formula.
Calculation Formula
How to Use the 70% Rule Fix and Flip Calculator
- 1 Enter the property's expected After Repair Value (ARV $).
- 2 Enter estimated Rehabilitation & Repair Costs ($).
- 3 Adjust the rule percentage (standard is 70%, but can be set to 65% or 75% depending on market velocity).
- 4 Review your Maximum Allowable Offer (MAO) and estimated net investor profit.
Methodology & Algorithmic Standards
Implements standard real estate formula: MAO = (ARV * RulePercentage) | Estimated Repairs. The remaining 30% margin cushions against holding costs, closing fees, financing interest, and investor profit.
Frequently Asked Questions
What is the 70% rule in real estate investing? ▼
The 70% rule states that an investor should pay no more than 70% of the After Repair Value (ARV) of a property minus the estimated cost of repairs.
When should I adjust the rule from 70% to 65% or 75%? ▼
In hot competitive markets with rapid appreciation, investors sometimes use 75%. In slower markets or high-interest environments, conservative investors use 65%.
Can I export the investment analysis? ▼
Yes. Click "Open in Notepad" to create a clean offer breakdown note.
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