The 70% rule in house flipping, worked through
The 70% rule says pay no more than 70% of ARV minus repairs. Where it comes from, the math on a real example, and what it does and doesn't cover.
Run the flip, then compare what lenders publish.
The 70% rule says pay no more than 70% of ARV minus repairs. Where it comes from, the math on a real example, and what it does and doesn't cover.
How DSCR lenders size a rental loan from rent instead of your income, what a 0.75 or 1.0 minimum means, and the terms 17 lenders publish.
Loan to cost, rehab draws, ARV caps, points and Dutch interest, explained with the terms 18 lenders publish for flips, plus bridge loans.
ATTOM's Q2 2026 report: 77,991 flips, a 21.5% typical gross return and $60,526 gross profit. What those figures leave out, and what they mean for your deal.
Flip profits are usually taxed at ordinary rates. When a flip is a short-term capital gain, when you're a dealer instead, and what the IRS says about each.
Send it to Fix and Flip Loans and we will reply by email.