A fix-and-flip guideline stating you should pay no more than 70% of a property's after-repair value (ARV) minus renovation costs. On a home with a $300,000 ARV and $50,000 in repairs, your max purchase price would be $160,000. This margin accounts for holding costs, selling costs, and profit.
Related Articles
- The 70% Rule for House Flipping in Canada
Calculate your maximum purchase price on any flip using the 70% rule. ARV formula, renovation budgeting, and real examples for Canadian house flippers.
- Buying Distressed Properties: Hidden Problems to Know
Spot common distressed property issues before buying. Hidden plumbing, water damage, pests and structural problems Canadian investors face.
- House Flipping Guide: Canadian Real Estate Investing
Complete Canadian house flipping guide covering property sourcing, renovation budgeting, contractor management, and profitable exit strategies for real estate investors.
- How to Flip Houses in Canada: 30+ Deal Lessons
House flipping fundamentals from an investor with 30+ completed deals. Team building, renovation cost estimation, ARV analysis, and financing strategies.
- Renovation Mistakes That Kill Flip ROI (Avoid These)
Avoid costly renovation mistakes that destroy your flip ROI. Learn which upgrades deliver 75-100% returns and how to finance renovation costs in Canada.