The 70% Rule in Real Estate, Explained
Published on: 27/08/2026
The 70% rule says pay no more than 70% of ARV minus repairs. Where the rule comes from, the margin math behind the 30%, and when to use 65% or 80% instead.
The 70% rule says pay no more than 70% of ARV minus repairs. Where the rule comes from, the margin math behind the 30%, and when to use 65% or 80% instead.
MAO = (ARV x 70%) - repairs - assignment fee. MAO calculation with a worked $300,000 example, repair estimates, and when to adjust the 70% rule.