The most to offer on a fixer-upper, with room for a wholesale fee.
Find the most you should offer on a fixer-upper. Enter the after repair value and the repair costs, and the 70 percent rule calculator gives your maximum allowable offer, with room for a wholesale fee if you are assigning the contract.
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The 70 percent rule formula
Maximum allowable offer = ARV × 70% − repair costs
The ARV (after repair value) is what the house will sell for once it is fixed, based on recent comparable sales. The 30% that is left over is meant to cover buying and selling costs, holding costs, financing and your profit. If you are wholesaling, subtract your fee as well, so the investor who buys the contract still gets a deal that fits the rule.
Worked example
The calculator opens with a house worth $250,000 once fixed that needs $40,000 of repairs.
- 70% of the ARV is $175,000.
- Minus the $40,000 of repairs, the maximum offer is $135,000.
- With a $10,000 wholesale fee, offer the seller no more than $125,000.
When to change the percentage
The 70% rule is a rule of thumb, not a law. In expensive or very competitive markets, investors sometimes go to 75–80% because a smaller percentage of a large ARV is still a big dollar profit. On lower-priced houses, slow markets or risky rehabs, many use 65% or less. Set the percentage field to match your market and your risk.
The 70% rule is a quick screen. Before you commit, run the full numbers, with financing, holding and selling costs, in the fix and flip calculator.
Read the detailed explanation of the 70 percent rule and how to calculate ARV.
Frequently asked questions
Does the 70% rule include closing and holding costs?
Yes, roughly. The 30% you don't spend is meant to cover buying, holding and selling costs plus profit, which is why the rule gets risky when holding times run long or selling costs are high.
Should the repair estimate include a contingency?
Yes. Use a full rehab estimate with 10–20% added for surprises. Underestimating repairs is the fastest way to turn a 70% deal into a loss.
Does the 70% rule work for rentals?
It is built for flips. For rentals and BRRRR deals, the rent and the refinance matter more; use the BRRRR calculator or the rental property calculator.
