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The 70% Rule: How to Calculate Renovation Costs Instantly

The 70% Rule: How to Calculate Renovation Costs Instantly

Don’t Fall in Love. Fall in Like with the Math. The biggest mistake new investors make is “emotional bidding.” They see a house and think, “I can make this cute.” Stop. You are an investor. You need Margin. The Formula: ARV x 70% – Repairs = Max Bid This is the 70% Rule used by […]

Don’t Fall in Love. Fall in Like with the Math.

The biggest mistake new investors make is “emotional bidding.” They see a house and think, “I can make this cute.” Stop. You are an investor. You need Margin.

The Formula: ARV x 70% – Repairs = Max Bid

This is the 70% Rule used by professional flippers globally.

  1. ARV (After Repair Value): What will this house sell for after you fix it? (e.g., 5.0 Million).
  2. The 70% Buffer: Multiply 5.0M by 0.70 = 3.5M. (This leaves you 30% for your profit and transaction costs).
  3. Minus Repairs: Estimate the repairs. Let’s say it needs 500k in work.
  4. Max Bid: 3.5M – 500k = 3.0 Million.

The Discipline

If the auction bidding goes up to 3.1M, you stop. You put the paddle down. Even if you love the house, the math says you lose money. The PropertyAuctions.ph environment is exciting, but the winners are the ones who know their “Walk Away” number.

Bring a Calculator, Not Your Feelings

We provide the base price. You provide the strategy. Do the math before the auction starts.