FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

70 Percent Rule Formula

Fx Copy

LaTeX Copy

Maximum Buying Price is the highest amount a buyer is willing to pay for a property, determined by factors such as market conditions, property value, and budget constraints. Check FAQs

BP max = (ARV \cdot 0.7) - ERC

BP_max - Maximum Buying Price?ARV - After Repair Value?ERC - Estimated Repair Costs?

70 Percent Rule Example

With values

With units

Only example

Here is how the 70 Percent Rule equation looks like with Values.

Here is how the 70 Percent Rule equation looks like with Units.

Here is how the 70 Percent Rule equation looks like.

43500 = (70000 \cdot 0.7) - 5500

43500 = (70000 \cdot 0.7) - 5500

43500 = (70000 \cdot 0.7) - 5500

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Mortgage and Real Estate » Category

Important Formulas of Mortgage and Real Estate » fx 70 Percent Rule

70 Percent Rule Solution

Follow our step by step solution on how to calculate 70 Percent Rule?

FIRST Step Consider the formula

BP max = (ARV \cdot 0.7) - ERC

Next Step Substitute values of Variables

∴

BP max = (70000 \cdot 0.7) - 5500

Next Step Prepare to Evaluate

∴

BP max = (70000 \cdot 0.7) - 5500

LAST Step Evaluate

∴

BP max = 43500

70 Percent Rule Formula Elements

Variables

Maximum Buying Price

Maximum Buying Price is the highest amount a buyer is willing to pay for a property, determined by factors such as market conditions, property value, and budget constraints.

Symbol: BP_max

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Maximum Buying Price

After Repair Value

After Repair Value is the estimated value of a property after it has undergone necessary repairs or renovations, typically used in real estate investment calculations.

Symbol: ARV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find After Repair Value

Estimated Repair Costs

Estimated Repair Costs refer to the projected expenses required to restore or improve a property, usually calculated before initiating renovation or maintenance work.

Symbol: ERC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Estimated Repair Costs

Other formulas in Important Formulas of Mortgage and Real Estate category

Go Monthly Mortgage Payment

p = \frac{MA \cdot R \cdot {(1 + R)}^{n}}{{(1 + R)}^{n} - 1}

Go Debt Ratio

DR = \frac{TD}{TA}

Go Rental Yield

RY = (\frac{ARI}{PV}) \cdot 100

Go Price per Square Foot

P sqf = \frac{PSP}{T sqf}

How to Evaluate 70 Percent Rule?

70 Percent Rule evaluator uses Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs to evaluate the Maximum Buying Price, The 70 Percent Rule helps you and your client determine whether or not they should invest in a property. Maximum Buying Price is denoted by BP_max symbol.

How to evaluate 70 Percent Rule using this online evaluator? To use this online evaluator for 70 Percent Rule, enter After Repair Value (ARV) & Estimated Repair Costs (ERC) and hit the calculate button.

FAQs on 70 Percent Rule

What is the formula to find 70 Percent Rule?

The formula of 70 Percent Rule is expressed as Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs. Here is an example- 43500 = (70000*0.7)-5500.

How to calculate 70 Percent Rule?

With After Repair Value (ARV) & Estimated Repair Costs (ERC) we can find 70 Percent Rule using the formula - Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

70 Percent Rule Formula

70 Percent Rule Example

70 Percent Rule Solution

70 Percent Rule Formula Elements

Other formulas in Important Formulas of Mortgage and Real Estate category

How to Evaluate 70 Percent Rule?

FAQs on 70 Percent Rule

Variable Name