Updated over 11 years ago on . Most recent reply
BP 70% Rule????
Hi. Is there something I am not seeing in the BP 70% calculator? It seems off a bit!
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You're going to have to be a bit more specific than that. I don't understand what your actually question is.
The 70% rule is a rule of thumb, and it is widely accepted throughout the circles of professional investors I've met and talked to.
(ARV - Repair Cost) * 70% = Maximum Allowable Offer
You can go with a higher percentage, if you're doing buy & hold. There are also certain markets/neighborhoods, where property values are severely depressed, that you may want to go with a lower % as a general practice. However, 70% is a good general target.
Again, what's your real question?