The classic flipper screen: your maximum allowable offer from ARV and rehab — with a sensitivity table so you can see the offer at 65, 70, and 75%.
Estimates for informational purposes only — not a loan offer, commitment, financial advice, or a lending decision. Program limits shown are illustrative and vary by lender.
The rule reserves 30% of the after-repair value for everything that isn't your offer — financing, holding, selling costs, and profit — then subtracts your rehab budget. What's left is the most you can pay and still expect the deal to work. It's deliberately blunt: one number, computed in seconds, to decide whether a lead is worth a deeper look.
A passing 70% number doesn't mean the deal is good — it means it's worth analyzing. Run the winners through the Fix & Flip Profit calculator to see real net profit, ROI, and cash needed with your actual financing terms.
It caps your offer at 70% of the after-repair value minus the rehab budget: max offer = ARV × 0.70 − rehab. It's a fast screen that leaves room for financing, holding, selling costs, and profit.
It's a screening heuristic, not underwriting. In hot markets investors stretch to 75%; in thin ones they pull back to 65%. Always follow a passing screen with a full profit analysis.
Your rehab budget exceeds what the rule allows against ARV — the deal doesn't pencil at that repair level. Lower the rehab scope, raise the ARV assumption, or pass.