What is the 70% rule in house flipping?

The 70% rule is a guideline for investors looking to flip a house (buying a home with the intention of quickly selling it for a profit). The investor should determine the property’s After Repair Value (ARV), which includes the price of the property as well as the cost of any repairs. The investor should then look to pay no more than 70% of the ARV, with the other 30% accounting for profits and additional expenses such as bond and transfer costs.