This calculator helps real estate investors determine the maximum price they should pay for a property to ensure a profitable flip, adhering to the 70% rule.
Results
Maximum Purchase Price:
$0.00
Data Source and Methodology
All calculations are based on the 70% rule, a standard in real estate investing. For more information, refer to BiggerPockets.
The Formula Explained
Formula: Maximum Purchase Price = ARV × 0.70 - Repair Costs
Glossary of Terms
- ARV: The estimated value of a property after repairs.
- Repair Costs: The total estimated cost of repairs needed.
- Maximum Purchase Price: The highest price you should pay for the property.
Frequently Asked Questions (FAQ)
What is the 70% rule in house flipping?
The 70% rule is a guideline for real estate investors to determine the maximum price they should pay for a property.
How do I calculate the 70% rule?
Multiply the After Repair Value (ARV) by 70% and subtract the estimated repair costs.