Flipping Houses and the 70% Rule

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Thought we’d share this fascinating article from the Lending Home. It’s called What is the 70% Rule in House Flipping.

It offers some stimulating ideas. This one’s particularly noteworthy:

When determining the maximum price you should consider paying for a property, the 70% Rule of real estate investing dictates that you should pay no more than 70% of the after repair value (ARV), minus repair costs.

But the 70% Rule in house flipping is far from written in stone. In fact, the word “rule” is a misnomer–it’s a loose guideline that is meant to offer a quick shorthand for a frame of reference.

To find out more about these ideas, look into the rest of this insightful piece.

 

Read the source article at lendinghome.com