The 70 percent rule is a guideline for real estate investors to follow when rehabbing a property. The rule states that an investor should never spend more than 70 percent of the after repair value (ARV) of a property on the purchase price and renovations. This leaves room for a profit margin, which is essential for any successful flip.
The 70 percent rule is a good starting point for new investors, but experienced investors may find that they can break the rule and still make a profit. Ultimately, it’s up to the investor to determine how much they are willing to spend on a property. However, following the 70 percent rule is a good way to ensure that you leave room for a profit margin.
How Accurate is the 70 percent Rule Flipping Calculator?
Most real estate investors use the 70 percent rule as a general guideline. However, there are a number of factors that can impact the final purchase price and renovation costs of a property. As such, it’s important to use a flipping calculator that takes these factors into account.
The most accurate way to estimate the purchase price and renovation costs of a property is to consult with a real estate agent or contractor. They will be able to give you a more accurate estimate based on the specific property you’re interested in.
However, if you’re looking for a quick and easy way to estimate the costs of a flip, you can use a flipping calculator. These calculators take into account a number of factors, such as the location of the property and the type of renovations required. As such, they can give you a more accurate estimate of the costs associated with a flip.
Where can I find a 70 percent rule calculator
There are a number of flipping calculators available online. However, not all of these calculators use the 70 percent rule. As such, you’ll need to be sure to use a calculator that specifically takes the 70 percent rule into account.
One such calculator is the Flipping Calculator by REI/Kit This calculator allows you to input the purchase price, renovation costs, and expected sale price of a property. It then calculates the estimated profit based on the 70 percent rule.
To use the Flipping Calculator, simply visit the REI/KIT website and enter the relevant information into the calculator. Once you’ve done this, you’ll be able to see how much profit you can expect to make from your flip.