70% Rule !??
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.
David Ramirez
#2 Wholesaling Contributor
Pro Member
#2 Wholesaling Contributor
- Wholesaler
- Tampa, FL
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.
Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
- Votes |
- 9,861
- Posts
Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
It is all preference, in a bull market the 70% rule is unlikely. With this climate 70% is the standard.
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes
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.
Quote from @David Ramirez:Thanks man, you’ve helped me gain some clarity in the way I think about MAO.
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.