How to use it honestly
The rule is only as good as the ARV you feed it. Estimate it from renovated comparable sales nearby (what comps are and how to pick them), not from what the project will feel like it deserves. Then be pessimistic about the repair budget: walls hide things, and the rule's margin is where surprises go to be paid for.
The formula: maximum offer = ARV × percentage − repairs. Move the percentage for the situation, never the repairs, and only after the inspection.
Which percentage, when
| Situation | Percentage | Why |
|---|---|---|
| Cosmetic work in a tight market | 75% to 80% | Little can go wrong behind the walls and competing bids force the number up. |
| A typical flip | 70% | The rule as written: enough margin for two closings, holding costs and the usual surprises. |
| Roof, repipe, foundation or a pool to fix | 60% to 65% | Big-ticket unknowns. The budget is a guess until the walls are open. |
| A home you will live in | The rule as a screen only | No profit margin needed, but the repair budget still has to be real. |
The same home at each percentage
An ARV of $400,000 and $60,000 of repairs. The percentage moves the offer by $20,000 for every five points, which is why the situation table matters.
| Percentage | ARV × percentage | Minus repairs | Maximum offer |
|---|---|---|---|
| 80% | $320,000 | $60,000 | $260,000 |
| 75% | $300,000 | $60,000 | $240,000 |
| 70% | $280,000 | $60,000 | $220,000 |
| 65% | $260,000 | $60,000 | $200,000 |
| 60% | $240,000 | $60,000 | $180,000 |
Then find the homes
Read more on after-repair value and the rule itself, or put the math to work. Kouzr scores every home it tracks against nearby comps, and its fixer-upper pages surface the listings whose own descriptions admit they need work. The fixer-upper guide carries the Las Vegas repair-cost ranges the repair budget starts from.
Questions people ask
What is the 70% rule?
A screening rule for fixer-upper purchases: pay at most 70% of the home's after-repair value, minus the repair budget. The remaining 30% covers transaction costs, financing, holding costs, and profit margin.
Where do I get the ARV?
From comparable sales: what similar homes nearby in finished condition actually close at. Price per square foot of renovated comps times the home's square footage is the usual first pass. Use the county's square footage, not the listing's.
Is 70% always the right number?
No. It is a starting point. Competitive markets push experienced buyers to 75-80%; expensive or risky projects justify less. The calculator lets you move the percentage for exactly that reason, and the table on this page says which number fits which situation.
How do I estimate the repair budget?
From bids, not from a rule of thumb, and padded by 10 to 20% for what the walls hide. For a first pass before the inspection, the fixer-upper guide carries 2026 ranges for the jobs that decide a Las Vegas deal: air conditioning, roof, repipe, sewer, pool, kitchen and baths.
Does the 70% rule include closing costs and holding costs?
Yes, that is what the 30% is for. It is not profit. It has to cover closing costs on the way in and commissions on the way out, the loan or the cash's opportunity cost, taxes, insurance and HOA dues while the work happens, and only then the margin.
A screening rule, not an appraisal or investment advice. Whether any specific purchase makes sense depends on facts no calculator holds.