70% rule for flipping?

[William Luke Laity]

I know it can vary depending on which market you are in, but is 70% off the ARV still a good rule to have for estimating closing costs and commissions, or has it changed some?

If you have something different, what do you find works for you? 

[Bob Okenwa]

@William Luke Laity

If you can hold to 70% of ARV-rehab you'd be in pretty good shape on most deals. It isn't as easy to find such deals these days, you really have to go out and create them.

[Ezra Henderson]

The 70% rule includes your profit in there. It’s usually broken down as 15% profit, 6% holding/financing costs, and 9% closing costs/commissions. 
So you find the ARV, multiply it by 70%, and then subtract your repairs costs and that's the price you should buy at. I don't generally use the 70% rule, but I know people who do well with it.

[Eliott Elias]

I am at 70% with 15% of ARV shaved off.