70% Rule Calculator — Fix and Flip Maximum Offer Tool

MAO

Not viable

Select screening mode

Enter ARV and Rehab Budget — calculator screens Maximum Allowable Offer using the canonical formula MAO = ARV × 70% − Rehab.

Property Inputs

ARV — After-Repair Value *

Estimated market value after full renovation. Use conservative comps — this is the most critical input.

Rehab Budget *

Maximum Allowable Offer

Based on 70% Rule

—

Enter ARV and Rehab Budget above

Three Scenarios at a Glance

Conservative 65% / Standard 70% / Competitive 75% — with your current inputs

Conservative 65%

—

Strong margin, protects against cost overruns

Rehab +10% overrun allowance

Standard 70% ★

—

Industry standard benchmark

Base inputs, no adjustments

Competitive 75%

—

Hot markets — thin margin, verify costs

2026 Sunbelt competitive zone

Sensitivity Table: Percentage × Rehab Variance

MAO at different percentage and rehab combinations

%	Rehab −10%	Rehab Base	Rehab +10%	Rehab +20%
65%	—	—	—	—
67%	—	—	—	—
70%	—	—	—	—
72%	—	—	—	—
75%	—	—	—	—

Note: Intermediate percentages (67%, 72%) show market transition zones between canonical 65/70/75 benchmarks. Use these mid-zones to model gradual market shifts. Main scenarios above use the canonical 65/70/75 trio; this table adds 67% and 72% for finer sensitivity resolution. Amber highlight = your current assumption.

Saved Scenarios

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No saved scenarios yet

Fill in the calculator above, then save your first scenario.

70% Rule Calculator for Fix and Flip Investors

Screen maximum offers on distressed properties in seconds

The 70% Rule Calculator helps fix-and-flip investors quickly screen the maximum offer they can make on a distressed property — using the industry-standard formula: Maximum Allowable Offer (MAO) = ARV × 70% − Rehab. Whether you call it a 70 percent rule calculator or a fix and flip offer calculator, the purpose is the same: a fast, reliable first-pass viability check before you invest analysis time in any deal.

This tool offers three distinct modes for different decision contexts. Mode 1 (Standard 70%, amber) applies the canonical formula and is the default quick screen for most investors. Mode 2 (Adjustable %, orange) lets you dial in a custom percentage from 60–80% to match your local market conditions — critical for 2026 Sunbelt markets where competitive bidding often requires 72–75%. Mode 3 (Reverse, purple) flips the question: enter your actual offer price to find out what percentage rule it implies. Mode 3 is uniquely valuable for wholesalers validating end-buyer fit. Beyond basic MAO output, the tool provides a two-tier status system distinguishing Offer as % of ARV (for the Status Badge) from Implied Rule in Mode 3, plus a 2026-aware Financing Buffer option (Mode 1 only) that adjusts for hard money rates.

The 70% Rule Calculator sits at the middle of a three-tool fix-and-flip workflow: first use the ARV Calculator to establish a solid After-Repair Value estimate from comparables, then run it through this tool for a quick go/no-go screen, and finally validate any deal that passes through the Fix and Flip Calculator for full profitability modeling. Each tool plays a distinct role — the 70% Rule is intentionally the fastest and simplest step in that chain.

Important: The 70% Rule is a screening heuristic — it embeds generalized cost assumptions (financing, holding, selling, profit). For committed capital decisions, always validate with the Fix and Flip Calculator for precise modeling of your specific deal. Results are projections, not guarantees. Enter ARV and Rehab Budget above to see your screened MAO, or import values from the ARV Calculator.

How to Use the 70% Rule Calculator

From ARV estimate to screened maximum offer in 4 steps

Enter the After-Repair Value (ARV)

ARV is the estimated market value of the property after all renovations are complete — not the current as-is value and not the asking price. If you don't have a reliable estimate, use the ARV Calculator first to build it from comparables. Pull 3–5 recent comparable sales within a 0.5–1 mile radius and adjust for size and condition differences for the most accurate input.

Enter the Rehab Budget

Enter the total estimated renovation cost to bring the property to ARV condition — include materials, labor, permits, and a contingency buffer of 10–15%. The rehab cost classification system helps frame your scope: cosmetic (0–15% of ARV), moderate (15–30%), heavy (30–40%), extensive (40–80%), teardown (>80%). The calculator warns you if Rehab exceeds 40% of ARV (heavy rehab may stretch the 70% Rule margin) or 80% of ARV (extreme — the rule may not apply at all).

Select mode (Standard 70% / Adjustable % / Reverse)

Mode 1 Standard 70% applies the canonical formula MAO = ARV × 0.70 − Rehab — the default for quick screening. Mode 2 Adjustable % lets you use 60–80% to reflect your local market conditions, and includes a benchmark band for comparison. Mode 3 Reverse takes your actual offer price and shows what percentage rule it implies. The Advanced panel offers a Wholesale Assignment Fee (if wholesaling) and a Financing Buffer toggle (Mode 1 only, subtracts 3% of ARV to account for 2026 hard money rates at 12–14%). The Financing Buffer is disabled in Mode 2 to prevent double-counting — your custom % already reflects market conditions.

Interpret MAO, Status Badge, and secondary metrics

The primary output is Maximum Allowable Offer (MAO) rounded to the nearest $500. The Status Badge (Deep Value / Standard Flip Zone / Competitive Zone / High Risk) is based on Offer-as-%-of-ARV. Secondary metrics — Gross Margin (Pre-Cost Buffer) and Rule Buffer (Profit + Costs Allocation) — give dollar context for what the percentage buffer covers. In Mode 3, you'll see two separate percentages: Offer % and Implied Rule — both valid, measuring different things. The 70% Rule is a screening tool. Before committing capital on any property that passes this screen, run the full analysis in the Fix and Flip Calculator to model your specific financing, holding, and selling costs.

Pro Tip 1 — ARV Quality

70% Rule accuracy depends entirely on ARV accuracy. A 10% ARV error translates to 7% MAO error. Always pull 3–5 recent comps (sold within 6 months, within 1 mile) before relying on MAO output.

Pro Tip 2 — Percentage Selection

In 2026 Sunbelt markets (Austin, Phoenix, Atlanta), expect 72–75% to win competitive MLS bids. Reserve 70% for off-market and 65% for foreclosure/auction deals. Don't apply 70% uniformly.

Pro Tip 3 — Wholesale Role

If wholesaling, enter your Assignment Fee in Advanced inputs. MAO then represents the seller-facing price — your end-buyer pays MAO + fee, which should still clear their 70% Rule threshold.

Pro Tip 4 — Workflow

Quick workflow: ARV Calculator → import ARV here via "Check offer viability" → if MAO looks viable, click "Run full flip analysis" to import into Fix and Flip Calculator for final validation.

Choosing the Right Mode

Standard 70% (amber) — Use when:

You want a quick go/no-go using the canonical industry formula. Best for first-pass screening of MLS listings and off-market deals.

Adjustable % (orange) — Use when:

Your local market requires a non-70% benchmark. Output includes benchmark band comparison at 65/70/75%. Note: Financing Buffer disabled in this mode (prevents double-counting).

Reverse Mode (purple) — Use when:

You have an offer price and want to know what % rule it matches. Mode 3 answers "is my existing offer in line with industry standards?" — different from Modes 1/2 which answer "what's the maximum I can offer?" Ideal for wholesalers validating assignability.

Inputs and Outputs

What you enter, what the calculator screens

Inputs

Input	Required	Default / Source
ARV (After-Repair Value)	All modes	From ARV Calculator or comps
Rehab Budget	All modes	From renovation estimate
Custom Percentage %	Mode 2 only	60–80 range, default 70
Your Purchase Price	Mode 3 only	Your actual offer amount
Wholesale Assignment Fee	Optional (all modes)	$0 default
Include Financing Buffer	Optional (Mode 1 only)	false (disabled in Mode 2)

Outputs

Output	Formula	Purpose
Maximum Allowable Offer (MAO)	ARV × % − Rehab − Wholesale Fee	Primary screen output; rounded to $500; shown only when >0
Status Badge	Based on Offer as % of ARV	Deep Value / Standard Flip Zone / Competitive Zone / High Risk
Gross Margin (Pre-Cost Buffer)	ARV − MAO − Rehab	Dollar buffer for ALL costs + profit — NOT profit alone
Rule Buffer (Profit + Costs Allocation)	ARV × (1 − %/100)	What the % buffer covers (financing, holding, selling, profit)
Offer as % of ARV	MAO / ARV × 100	What % of ARV you're paying. Distinct from Implied Rule (Mode 3). Both valid — measure different things.
Implied Rule (Mode 3)	(Purchase + Rehab) / ARV × 100	Total investment as % of ARV — different from Status Badge's Offer as % of ARV

How the 70% Rule Calculator Works

The industry-standard heuristic — with a worked Austin, TX 2026 example

The 70% Rule Calculator applies a screening formula used by flippers since the 1980s: Maximum Allowable Offer (MAO) = ARV × 70% − Rehab. The 70% represents an industry-standard allocation — roughly 15–20% for all costs (financing, holding, selling) and 15–20% for profit, totaling the 30% buffer. This calculator adds 3 modes (Standard, Adjustable, Reverse), two-tier status interpretation, 2026 rate environment awareness, and explicit cross-referencing to the Fix and Flip Calculator for full deal analysis. Results are screening projections — first-pass viability indicators, not final offer prices.

Formula Variants

// Standard 70% Rule (Mode 1)

MAO = ARV × 0.70 − Rehab − Wholesale Fee (if any)

// With Financing Buffer (Mode 1 optional):

MAO = MAO − (ARV × 0.03)

// Adjustable % (Mode 2, 60–80% range)

MAO = ARV × (Custom % / 100) − Rehab − Wholesale Fee

// Financing Buffer NOT available in Mode 2 (prevents double-counting)

// Reverse Mode (Mode 3)

Implied Rule = ((Purchase Price + Rehab) / ARV) × 100

Offer as % of ARV = Purchase Price / ARV × 100 // for Status Badge

// Secondary metrics

Gross Margin (Pre-Cost Buffer) = ARV − MAO − Rehab

Rule Buffer = ARV × (1 − %/100)

Worked Example — Austin, TX (2026 Standard Market)

Inputs: ARV = $250,000 | Rehab = $30,000 | Mode 1 Standard 70% | No wholesale fee | Financing Buffer off

MAO = $250,000 × 0.70 − $30,000 = $175,000 − $30,000 = $145,000

Gross Margin (Pre-Cost Buffer) = $250,000 − $145,000 − $30,000 = $75,000

Rule Buffer = $250,000 × 0.30 = $75,000

Offer as % of ARV = $145,000 / $250,000 × 100 = 58% → Status Badge: GREEN "Deep Value"

Alternative (Competitive Hot Market, 75%):

MAO = $250,000 × 0.75 − $30,000 = $157,500 | Offer as % of ARV = 63% → BLUE "Standard Flip Zone"

Shifting from 70% to 75% raises MAO by $12,500 and moves the Status Badge up one tier. Mode 1 Financing Buffer (Mode 1 only) would further adjust for 2026 rate environment by subtracting 3% of ARV ($7,500).

• 70% is the canonical figure; Mode 2 allows 60–80% adjustment for market conditions.

• Mode 3 (Reverse) includes Rehab in the Implied Rule formula, which is why it can differ from the Status Badge's Offer-as-%-of-ARV.

• Financing Buffer (Mode 1 only) is a 2026 high-rate adjustment — do not combine with Custom % (double-count).

What Is the 70 Percent Rule in Real Estate?

The industry-standard screening heuristic for fix-and-flip investors

The 70% Rule is an industry-standard screening heuristic used by fix-and-flip investors to quickly determine the maximum they can pay for a distressed property. The formula is MAO = ARV × 0.70 − Rehab. The "70%" represents a buffer: approximately 15–20% for all transaction costs (financing ~2–4%, holding ~5–8%, selling ~6–7%) and 15–20% for the investor's profit margin. Popularized in the 1980s–1990s flipping community and widely promoted by platforms like BiggerPockets, it remains the industry's go-to quick-screen tool. This is a screening heuristic, not a valuation method — for committed capital decisions, use the Fix and Flip Calculator for full deal analysis.

Two different percentages can describe the same deal, and this is the single most confusing aspect of the 70% Rule for new investors. The Offer as % of ARV (MAO / ARV × 100) measures how much of the property's value you're paying in the purchase price alone. The Implied Rule ((Purchase + Rehab) / ARV × 100) measures your total investment — purchase price plus renovation — as a percentage of ARV. Example: ARV $200K, Rehab $30K, offer $110K. Offer as % = 55% (Deep Value badge). Implied Rule = 70% (Standard flip territory). Both are correct and measure different aspects of the same deal.

The traditional 70% Rule was designed for ~5% interest rate environments. In 2026 with hard money at 12–14% and typical 4–6 month flips, financing alone can eat 4–5% of ARV — eroding the 30% buffer significantly. This calculator offers a Financing Buffer toggle (Mode 1 only) that subtracts 3% of ARV to account for modern costs. Alternatively, many 2026 Sunbelt markets require 72–75% Rule to win competitive bids — use Mode 2 for this approach. Do not combine both: they address the same problem from different angles, and using both double-counts financing costs.

What Your MAO and Status Badge Mean

Interpreting the screening output + scenario comparison

MAO is the ceiling for your offer — not the target. Paying exactly at MAO leaves the minimum margin; experienced investors typically bid $5K–$15K below MAO to maintain negotiating room. The Status Badge reflects how aggressive your offer is relative to property value, not how much profit you'll make.

Status Badge Tiers (based on Offer as % of ARV)

≤60%

Deep Value — GREEN

Strong margin, rare find. Typical in auctions, foreclosures, or seriously distressed inventory. Hard to win in competitive MLS bidding.

60-70%

Standard Flip Zone — BLUE

Healthy margin, standard flipping territory. Common for off-market deals in balanced markets.

70-75%

Competitive Zone — AMBER

Thinner margin, competitive markets (2026 Sunbelt). Verify holding and financing costs carefully before proceeding.

>75%

High Risk — RED

Thin margin may not cover all costs in 2026 rate environment. Consider BRRRR or rental exit strategy instead of flipping.

2026 Market Context

Most competitive Sunbelt markets (Austin, Phoenix, Atlanta, Dallas) require a 72–75% Rule to win MLS-listed distressed properties. Off-market deals still clear 65–70%. Auction/foreclosure/tax sale properties can clear 55–65% for patient investors. Hard money rates at 12–14% mean the traditional 70% buffer is stretched — use the Financing Buffer (Mode 1) or a higher percentage (Mode 2) to adjust. The Status Badge still uses canonical 70% boundaries — it reflects your offer risk, not market conditions.

70% Rule Benchmarks for 2026

Percentage ranges, market types, and rehab cost classifications

These are illustrative patterns based on typical fix-and-flip scenarios in 2026 US markets — not measured statistical datasets, not market research, not predictions for any specific deal. Individual results depend on local market dynamics, deal source, and property condition.

Percentage Tiers by Market Type

Percentage	Market Type	Interpretation
60–65%	Slow / Buyer's Market	Deep value, strong margin, hard to win at auction
65–70%	Balanced / Standard	Industry-standard flipping zone
70–75%	Seller's / Competitive	Hot market, thin margins — verify carefully
75–80%	Hyper-Competitive	Thin margins; often BRRRR/rental exit, not flip
>80%	Not Flip Territory	Long-term hold (rental) or retail buyer

Typical 2026 Market Benchmarks

Sunbelt (Austin, Phoenix, Atlanta, Dallas)

72–75% Rule to win MLS bids in 2026

Midwest (Cleveland, Indianapolis, Kansas City)

65–70% Rule still viable in balanced markets

Coastal (LA, NY, Boston)

75–80% common; BRRRR often preferred over flips

Rural / Auction / Tax Sale

55–65% achievable with patience and off-market sourcing

Rehab Cost Classification (% of ARV)

0–15% ARV: Cosmetic (paint, flooring, fixtures) — no warning
15–30% ARV: Moderate (kitchens, baths) — no warning
30–40% ARV: Heavy (systems, additions) — amber warning triggered at >40%
40–80% ARV: Extensive (structural, full gut) — amber "heavy rehab" warning; may still work but verify with Fix and Flip Calculator
>80% ARV: Teardown/Rebuild — red "extreme rehab" warning; 70% Rule may not apply; use different analysis framework

How to Use the 70% Rule by Investor Type

Matching the screening approach to your business model

Beginner Flipper (1–3 deals)

Start with Mode 1 Standard 70% as your default screen, and enable the Financing Buffer since you likely use hard money at 12–14% rates. Only pursue deals where the Status Badge shows Green (Deep Value) or Blue (Standard Flip Zone). Always run the Fix and Flip Calculator before making the offer — don't rely on the 70% Rule alone for your first few deals.

Experienced Flipper (10+ deals)

Use Mode 2 Adjustable % with your local market's benchmark (72–75% for Sunbelt, 65–70% for Midwest). Skip the Financing Buffer in Mode 2 since your custom % already accounts for market conditions. Use the Status Badge as a quick visual filter for deal sourcing — pass on deals showing Red "High Risk." The Fix and Flip Calculator is still useful for precise profit projection, but the 70% Rule becomes your primary MLS and wholesaler screening tool.

Wholesaler

Use Mode 3 Reverse to validate if an end-buyer's 70% Rule will accept your assignable price. Enter your property-under-contract price, Rehab estimate, and ARV to see the Implied Rule. If Implied Rule ≥ 75%, your deal is thin for flippers — it may only be assignable to BRRRR or rental investors. Use Mode 1 with Wholesale Assignment Fee to work backward: how much to offer the seller so your margin and the end-buyer's 70% Rule both work.

Real Estate Agent / Advisor

Use the 70% Rule to set realistic expectations with investor clients and distressed-property sellers. Show the Status Badge tiers to explain why investor offers typically fall 55–70% of ARV, not "full market value." Use Mode 2's benchmark band (65/70/75%) to communicate local market competitiveness to sellers considering investor offers. Always redirect clients to the Fix and Flip Calculator for full deal underwriting before proceeding.

Hybrid Investor (Flip + BRRRR + Rental)

Use Mode 3 Reverse to classify deals by Implied Rule — deals with Implied ≥ 75% shift from flip analysis to BRRRR or rental analysis. Use the "Analyze as BRRRR instead" CTA to pivot high-implied deals into the BRRRR Calculator. Use Compare Real Estate Deals to test the same deal across all three strategies (Flip vs BRRRR vs Rental). For this investor type, the 70% Rule is a strategy selection tool, not just a flip screen.

Common Use Cases

When the 70% Rule Calculator is the right tool

Quick MLS Screening

When evaluating distressed MLS listings, enter ARV and estimated Rehab to see if the list price falls within a viable offer range. If the screened MAO is significantly below list price, the deal likely isn't worth pursuing — move on quickly and preserve your analysis time for deals that pencil.

Wholesaler Deal Validation

Use Mode 3 Reverse to check if your under-contract property is assignable at your target price. If the Implied Rule exceeds 75%, end-buyers (fix-and-flip investors) likely won't take the deal without a price reduction — either renegotiate or pivot to BRRRR-type buyers.

Auction / Foreclosure Maximum Bid

Before an auction, compute MAO at 65% (Conservative) to set your absolute maximum bid. Walk away if bidding exceeds MAO — auction psychology often pushes otherwise-disciplined investors into thin-margin deals that look competitive in the room but don't pencil on paper.

Off-Market Seller Education

When negotiating directly with distressed sellers, the 70% Rule calculation explains transparently why you can't pay closer to ARV. Showing the formula and the cost breakdown builds trust and often accelerates negotiations more effectively than simply presenting a low offer number.

Portfolio Deal Flow Screening

Run every incoming deal through the 70% Rule as a first-pass filter. Only deals passing the screen (Green or Blue Status Badge) advance to the Fix and Flip Calculator for full analysis. This saves hours on deals that will never pencil, letting you focus your modeling time on genuine opportunities.

How This Calculator Aligns with Industry Conventions

70% Rule history, peer tools, and profit conventions

The 70% Rule's Origin

The 70% Rule was popularized in the 1980s–1990s fix-and-flip community and promoted heavily by BiggerPockets, SparkRental, and educator networks starting in the 2010s. The 30% buffer rationale: roughly 15–20% for all transaction costs (financing ~2–4%, holding ~5–8%, selling ~6–7%) and 15–20% for the investor's profit margin. It was designed for lower rate environments — around 5% mortgage rates prevalent pre-2022. The 2026 high-rate environment challenges the rule, which is why this calculator offers a Financing Buffer adjustment for Mode 1.

Profit Margin Conventions

The minimum target profit in the industry is typically $25K–$50K per flip in national average markets. A 15–20% profit as a percentage of ARV is the industry benchmark. Below 10% profit: the deal isn't worth the risk. Above 25% profit: usually indicates an aggressive ARV estimate or underestimated rehab. The Fix and Flip Calculator converts this screening tool into a precise profit projection with your specific deal parameters.

How RealCalc Differs from BiggerPockets / DealCheck / SparkRental

BiggerPockets: Has 70% Rule in their Fix and Flip calculator but not as a standalone screening tool.
DealCheck: Combines 70% Rule with full flip analysis in one screen — harder to use for quick screening.
SparkRental: Educational content strong; dedicated calculator less prominent.
RealCalc 70% Rule Calculator: Unique in (a) 3-mode flexibility, (b) Status Badge vs Implied Rule distinction, (c) explicit 2026 Financing Buffer, (d) seamless CTA flow to Fix and Flip, BRRRR, and Compare Deals.

These comparisons describe market positioning, not endorsements. Multiple quality calculators exist — RealCalc emphasizes screening + explicit cross-tool integration.

Limitations of the 70% Rule

What this screening tool cannot tell you

Screening heuristic, not full deal analysis

The 70% Rule embeds generalized cost assumptions; your actual financing, holding, and selling costs may differ significantly. High-rate environments (2026 hard money 12–14%) stretch the embedded profit margin beyond realistic levels for many deals. Always validate with the Fix and Flip Calculator before committing capital — this is not a substitute for professional deal analysis. For tax or financing specifics, consult a CPA and licensed lender.

Does not model holding time

70% Rule assumes a typical 4–6 month flip hold. Longer holds (slow markets, permit delays, contractor issues) inflate holding costs beyond the 30% buffer. Fix and Flip Calculator models exact hold time and its cost implications. If your market has 12+ month resale times, adjust Custom % down to 65% or below to maintain adequate margin.

Assumes typical rehab scope

70% Rule works best for cosmetic to moderate rehab (0–30% of ARV). Heavy rehab (30–40%) stretches the margins — the calculator flags this with an amber warning. Extensive rehab (40–80%) may still be viable but requires full analysis rather than relying on this screening tool. Teardown/rebuild scenarios (>80% ARV) break the rule entirely — use a different valuation framework.

ARV accuracy determines result accuracy

A 10% ARV error translates to a 7% MAO error. Overestimating ARV — the most common investor mistake — leads to overpaying. Use the ARV Calculator with 3–5 recent comparable sales for confidence. A low-confidence ARV is itself a risk factor that the calculator cannot model internally.

Market conditions can invalidate the 30% buffer

Hot markets requiring 75%+ offers erode the profit margin from the high side. Slow markets with extended hold times erode it from the cost side. The 70% figure is a mid-cycle benchmark; extreme markets at either end require adjusted frameworks. Use Mode 2 Adjustable % with local market data instead of defaulting mechanically to 70%.

Not a substitute for professional advice

This is an educational and screening tool, not investment advice. Before committing capital: consult a CPA for tax specifics, an attorney for contracts and entity structure, a licensed lender for actual financing terms, and a licensed contractor for accurate rehab scope and cost. The MAO output is a screening projection, not a commitment.

When Not to Use This Calculator

• Rental property analysis: use Rental Property Calculator or Rental Property ROI Calculator
• BRRRR strategy evaluation: use BRRRR Calculator (different cost structure with refi step)
• Commercial or multifamily 5+ units: 70% Rule is residential fix-and-flip specific
• New construction: teardown/rebuild requires different valuation framework
• Long-term buy-and-hold: use Rental Property ROI Calculator for lifetime wealth analysis
• Tax planning or capital gains analysis: consult a CPA

Common Mistakes When Using the 70% Rule

Avoid these five errors

Overestimating ARV

The most common error: investors anchor on the best recent comp rather than the median of 3–5 comps in comparable condition. Overestimating ARV by 10% inflates MAO by 7%, turning marginal deals into seemingly viable ones. Use the ARV Calculator with multiple comparables to build a defensible estimate.

Underestimating Rehab

The second most common error — forgetting permits, unforeseen structural issues, labor cost inflation (up 15–25% since 2021), or the 10–15% contingency buffer that experienced investors always include. Underestimated rehab shrinks actual margin while the 70% Rule still shows "viable." Get real contractor bids, not online estimator guesses.

Treating 70% as a law of nature

70% is a mid-cycle benchmark, not gospel. Competitive 2026 Sunbelt markets require 72–75%. Slow rural markets may support 65%. Using 70% rigidly in a competitive market means you'll lose every bid to investors who know their local benchmarks. Use Mode 2 with your local market data.

Double-counting financing costs

Applying the Financing Buffer (Mode 1) AND using a Custom % (Mode 2) both account for financing — doing both double-counts. The calculator prevents this by disabling the Financing Buffer in Mode 2, but understand the principle: choose one adjustment method, not both. Custom % already bakes in your market and rate assumptions.

Relying on 70% Rule alone for commitment

The 70% Rule is a first-pass screen, not full underwriting. Before signing a purchase agreement, run the deal through the Fix and Flip Calculator to model your specific financing rate, holding period, and selling costs. Screening saves time; thorough analysis saves capital. Many deals that pass the 70% screen fail when real financing costs are modeled at 2026 rates.

Frequently Asked Questions

Common questions about the 70% Rule

Related Calculators

Continue your flip analysis workflow

ARV

ARV Calculator

After-Repair Value estimation using comparable sales. Use this BEFORE 70% Rule to establish accurate ARV input.

F&F

Fix and Flip Calculator

Full deal analysis with financing, holding, selling costs, and precise profit projection. Use AFTER 70% Rule screening passes.

BRR

BRRRR Calculator

Buy-Rehab-Rent-Refi-Repeat analysis for deals too thin for flipping but viable as long-term holds.

CMP

Compare Real Estate Deals

Side-by-side comparison of Rental vs BRRRR vs Flip strategies for the same property.

CAP

Cap Rate Calculator

Capitalization rate calculation for income-producing properties. Useful for rental exit strategy analysis.

%	Rehab −10%	Rehab Base	Rehab +10%	Rehab +20%
65%	—	—	—	—
67%	—	—	—	—
70%	—	—	—	—
72%	—	—	—	—
75%	—	—	—	—

%	Rehab −10%	Rehab Base	Rehab +10%	Rehab +20%
65%	—	—	—	—
67%	—	—	—	—
70%	—	—	—	—
72%	—	—	—	—
75%	—	—	—	—

%	Rehab −10%	Rehab Base	Rehab +10%	Rehab +20%
65%	—	—	—	—
67%	—	—	—	—
70%	—	—	—	—
72%	—	—	—	—
75%	—	—	—	—