March 10, 2025

Understanding the 70% Rule in House Flipping

The 70% rule in house flipping is a guideline for investors to ensure profit when rehabilitating and selling properties. This rule suggests that you should pay no more than 70% of the after-repair value (ARV) of a property, minus the estimated repair costs. By adhering to this rule, house flippers can minimize financial risks and increase their chances of a successful flip. It's a fundamental principle for both new and experienced real estate investors.

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