What is ARV in real estate?

ARV stands for after-repair value — what the property will sell for once renovations are complete. It is established from recent comparable sales of similar, already-renovated homes in the same area, not from asking prices.

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Q: What is the 70% rule in house flipping?

The 70% rule says an investor should pay no more than 70% of a property’s after-repair value (ARV) minus the estimated rehab cost. For a home with a $300,000 ARV needing $50,000 of work, the maximum allowable offer is (300,000 × 0.70) − 50,000 = $160,000. The 30% spread absorbs holding costs, closing costs, selling costs and profit.

Q: What is Maximum Allowable Offer (MAO)?

Maximum Allowable Offer is the highest price you can pay for a property and still hit your target return. It is calculated from the after-repair value less rehab, holding, closing and selling costs, and your required profit.

Q: Does the 70% rule still work in 2026?

It remains a fast screening tool, not a final underwriting model. In higher-priced markets investors often use 75% because fixed costs are a smaller share of the deal; in slower or higher-rate markets 65% is safer because holding costs run longer. Use the rule to filter deals quickly, then verify with the full cost breakdown.

Enter your numbers and get the Maximum Allowable Offer, projected profit, ROI, and a 70% rule check. Nothing is gated, nothing is emailed, nothing is stored — the math runs in your browser.

How the math works

70% rule ceiling

(ARV × 70%) − Rehab

A fast screen. If the asking price is far above this, move on.

Maximum Allowable Offer

ARV − Rehab − Holding − Closing − Selling − Profit

The real ceiling. Every cost is explicit rather than hidden inside a percentage.

Projected profit

ARV − Price − Rehab − All costs

What you actually keep if the deal performs as modelled.

Selling costs are a percentage of ARV, since commissions are paid on the sale price.
Holding costs are the total for the whole hold, not monthly — a 6-month hold at $1,500/mo is $9,000.
The 70% rule already bakes in costs and profit, which is why its ceiling and your MAO rarely match exactly. Trust the MAO.

Questions investors ask

What is the 70% rule in house flipping?

Pay no more than 70% of after-repair value minus rehab. On a $300,000 ARV needing $50,000 of work: (300,000 × 0.70) − 50,000 = $160,000 maximum offer. That 30% spread absorbs holding, closing and selling costs — plus your profit.

What is Maximum Allowable Offer (MAO)?

The highest price you can pay and still hit your target return. This calculator works it backwards from ARV: subtract rehab, holding, closing and selling costs, then subtract the profit you require. What is left is your ceiling.

What is ARV?

After-repair value — what the home sells for once renovations are done. Pull it from recent sold comparables of already-renovated homes nearby. Never from asking prices, and never from an automated estimate alone.

Does the 70% rule still work in 2026?

As a screen, yes. As underwriting, no. Higher-priced markets often support 75% because fixed costs are proportionally smaller; slower or higher-rate markets argue for 65% because you hold longer. Screen with the rule, then check the full cost breakdown below it.

The numbers only matter if you see the deals.

We send off-market Central Florida properties to our investor list before they hit the market — with ARV comps, rehab estimates and projected returns already attached.

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