1-2% rule for BRRRR based on ARV, all-in cost, or refi amount?

[David Ripplinger]

Hi all! As I'm analyzing BRRRR deals, I'm trying to use the 1% (or 2%) rule of thumb as part of my initial quick analysis before diving deeper into it. But for a BRRRR, should that percentage be calculated based on the ARV of the property, my all-in cost, or should it be based on how much I pull out of it in the cash out refinance?

With the several videos and forum posts I've seen, my best guess is that most people base it on the ARV. But personally, I'm leaning toward how much the cash out refinance is to do an initial determination of whether it will cash flow.