The 70% rule, next to what our own four-row math would produce on the same ARV, repair estimate, margin and fee.
Our own math is $15,920 higher than the 70% rule on these numbers.
Repairs are subtracted directly in both formulas, so a lower repair estimate raises the offer either way, which is also why a repair estimate is worth getting from a contractor rather than a guess. The 70% rule is a common investor rule of thumb, not a regulation; our own four-row process (ARV, repairs, margin, fee) is the same math shown with a worked example on how we calculate an offer.
The 70% rule bundles an investor's margin and holding costs into one multiplier applied to the ARV. Our own process itemizes that margin as its own row, alongside a separate fee, which is why the two numbers move differently as the inputs change.
Both are estimates built on an ARV and a repair figure you entered. A real offer needs the property itself, verified comparable sales and a contractor's repair number, which is what an actual conversation with us starts.