$150,000 (ARV) x .70 (ARV percentage) = $105,000; $105,000 – $20,000 (ERC) = $85,000 (buying price) This formula is commonly used by house-flipping investors to decide how much to pay on a fix and flip. 70% Rule: Formula and Example. The formula itself is rather simple: Once the ARV and ERC are calculated, you then plug in the numbers. More @Wikipedia
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