70% Rule Calculator for House Flipping
Calculate the Maximum Allowable Offer (MAO) for a fix-and-flip deal using the 70% rule and see if a deal qualifies.
The 70% Rule: A Quick Deal Screener
The 70% rule is the most widely used quick-screener in residential real estate investing. It gives investors an immediate go/no-go signal on potential deals before spending hours on detailed analysis. If a deal doesn't meet the 70% threshold, it almost certainly won't work as a flip unless you can negotiate the price down significantly.
In practice, successful flippers use the 70% rule to filter the hundreds of properties they evaluate each year, then run detailed pro formas only on deals that pass the initial screen. This saves enormous time and prevents emotional attachment to deals that don't pencil out mathematically. Remember: the rule is a minimum standard, not a guarantee of profit.