The 70% rule, and why flips go wrong
The flipping rule of thumb: don't pay more than 70% of ARV minus repairs. On a $320k ARV with $45k of rehab, that's a $179k max offer — the buffer covers holding costs, selling fees, and your profit. This calculator shows that max offer alongside your actual projected profit so you can see how much cushion a deal really has.
Most flips die on two line items beginners underestimate: holding costs (every month you own it, the loan, taxes, and utilities bleed cash) and selling costs (agent commissions and closing easily run 7–9% of the sale price). Both are built in here so your profit number is honest, not optimistic.
Frequently asked
- What is ARV?
- After-Repair Value — what the property will sell for once renovated, based on comparable sales. It's the single most important and most-often-overestimated number in a flip.
- What's a good flip profit?
- Many flippers target a profit margin of at least 10% of ARV, or a minimum dollar profit that justifies the risk and time. This tool shows both your dollar profit and margin.
- Is this investment advice?
- No — it's an educational estimate. Real flips carry risk from overruns, market shifts, and surprises behind the walls. Verify comps and budgets independently.