Should You Ever Pay More Than The 70 Percent Rule Suggests?
Yesterday, we discussed the 70 percent rule as it applies to flipping houses. Check out that previous blog post if you aren't sure what the 70 percent rule is. Today's question is whether you should ever pay more than the 70 percent rule suggests. For example, some beginner investors think that it's OK to exceed the amount specified by the 70 percent rule in an appreciating market. After all, in a few months or by the time you finish your rehab, the After Repair Value should go up, right? Typically, but that's a big risk to take if it doesn't!