What Is It?

The "70% Rule" is a purchase criteria commonly used by real estate investors when analyzing properties that require rehab work, especially house flips and BRRRRs.

According to this rule, the purchase price of a property you're buying should be less than or equal to 70% of its after repair value (or an adjusted multiple), minus the rehab costs you expect to have.

If the 70% after repair value multiple is not accurate for your specific market, you can adjust it to better match your targets.

How Is It Calculated?

You can learn more about the 70% Rule on our blog.

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