Maximum allowable offer, total project costs, and net flip profit. Updated live as you type.
MAO = ARV × 70% - rehab costs. Total project costs = purchase + rehab + holding + selling costs. ROI = net profit / total project costs. Excludes financing points and buying closing costs unless you add them to holding costs. Estimates for educational purposes, not financial advice.
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After Repair Value (ARV) is the estimated market value of a property once all planned renovations are complete. It is the number every other part of a flip depends on: your offer, your rehab budget, and your profit all work backward from it.
ARV is usually estimated from recently sold comparable properties ("comps") in the same neighborhood that match the finished home's size, bed and bath count, age, and condition. Use sales from the last 3-6 months within about half a mile when you can, and lean toward the conservative end of the range.
The 70% rule is a quick way to find the most you should pay for a flip. It leaves roughly 30% of the ARV to cover holding costs, selling costs, and your profit.
Using the calculator's default numbers:
Many flippers aim for a net profit of at least 10%-20% of the After Repair Value (ARV), the estimated market value of the property once renovations are complete. That is often $25,000-$30,000 or more per deal after purchase, rehab, holding, and selling costs. Thinner margins leave little room for rehab overruns or a slower sale.
The 70% rule (Maximum Allowable Offer = ARV × 70% - repair costs) is a quick screening tool, not a guarantee. In competitive markets many investors pay 75%-80% of ARV on light cosmetic flips, while heavy rehabs or slower markets may call for 65% or less. Always confirm the deal with a full cost breakdown like the one in this calculator.
Include loan interest and points, property taxes, insurance, utilities, HOA dues, and any lawn care or security for every month you own the property. Add a buffer of 1-2 months beyond your planned timeline, since permits, contractor delays, and time on market often run longer than expected.