70% Rule !??

Rehabbing & House Flipping
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70% Rule !??

Arthur V Bernestine III
Flipper/Rehabber · Los angeles · Member since 2023 · 33 posts · 9 votes

Are we still sticking to the 70% rule when analyzing deals ? Or are we using a different formula ?. I’m also in the PNW,  so I’m not to informed on the best method to use in this part of the market. 

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  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    Yes, if it's a distressed property I still do the 70% rule, if I like the property I flip it if not I wholesale at 80% ARV - Repairs.

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    It is all preference, in a bull market the 70% rule is unlikely. With this climate 70% is the standard. 

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  • Arthur V Bernestine III
    OP
    Flipper/Rehabber · Los angeles · Member since 2023 · 33 posts · 9 votes
    3y
    Quote from @Eliott Elias:

    It is all preference, in a bull market the 70% rule is unlikely. With this climate 70% is the standard. 

     Interesting. That helps me out a ton believe it or not. 

    0Reply
  • Arthur V Bernestine III
    OP
    Flipper/Rehabber · Los angeles · Member since 2023 · 33 posts · 9 votes
    3y
    Quote from @David Ramirez:

    Yes, if it's a distressed property I still do the 70% rule, if I like the property I flip it if not I wholesale at 80% ARV - Repairs.

    Thanks man, you’ve helped me gain some clarity in the way I think about MAO. 
    1Reply
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