70% rule calculator.
Your maximum offer, then the truth behind it.
The 70% rule is the fastest screen in real estate investing: offer no more than 70% of after-repair value minus repairs. FlipRight Analyzer™ gives you that number instantly — then shows whether it actually holds once holding costs, financing, and selling costs enter the picture.
The MAO math FlipRight runs
The screen, and then the underwriting behind it.
The rule assumes an average market, average repairs, and average selling costs. FlipRight shows you where your deal is not average.
Four steps from listing to decision
- 01
Get ARV from sold comps
The rule is only as good as the ARV. FlipRight pulls and scores recent comparable sales rather than relying on an estimate you typed in.
- 02
Estimate repairs with a scope
Line-item scope or per-square-foot bracket, plus a contingency percentage so the MAO already absorbs a modest overrun.
- 03
Set your rule percentage
70% is the default. Competitive markets often need 75–80%; heavy rehabs and slow markets need 60–65%. Your Buy Box holds your standard.
- 04
Verify with the full model
The analyzer prices financing, holding, and selling costs to confirm whether the rule-based offer really clears your minimum profit.
When 70% is the wrong number
The rule bakes in roughly 10% for selling costs, 10% for holding and financing, and 10% for profit. That is reasonable for a $250,000 ARV flip on a 5-month timeline. It is far too loose on a $900,000 ARV project where 10% profit is $90,000 and the market takes six months to absorb, and it is far too tight on a $120,000 wholetail that closes in three weeks.
Use the rule to triage a list of leads. Use the full underwriting model to decide which one gets your capital. FlipRight runs both from the same inputs, so you never have to choose between speed and rigor.
Enforced by your Buy Box
- ARV range, maximum repairs, and minimum profit thresholds
- Bed, bath, square footage, and year-built criteria
- Target spread and rule percentage per market
- Automatic grading of every new lead against your standards
- Alerts when an inbox lead matches your box
Questions investors ask
Straight answers on how the analyzer handles this strategy.
What is the 70% rule?
Offer no more than 70% of after-repair value minus estimated repair costs. The remaining 30% is meant to cover holding costs, financing, selling costs, and profit.
Should I use 70%, 75%, or 80%?
It depends on market speed, deal size, and rehab risk. Competitive markets often force 75–80% on light rehabs; heavy or slow deals need 60–65%. FlipRight lets you set the percentage per market and grades every deal against it.
Does the 70% rule include closing costs?
Not explicitly — that is its weakness. FlipRight computes the rule-based number and a full-cost number that includes closing, financing, holding, and selling costs, and uses the lower one.
Can I calculate MAO from a target profit instead?
Yes. Enter the profit you require and the analyzer solves for the purchase price that delivers it after every cost.
Get your maximum offer in seconds.
Then confirm it survives holding, financing, and selling costs.