CalculateRealEstateROI

BRRRR

What is the 70% rule in BRRRR?

Maximum purchase + rehab budget should equal 70% of ARV.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Maximum purchase + rehab budget should equal 70% of ARV.

Expanded explanation

Builds 30% margin for cost overruns, appraisal shortfalls, and refinance proceeds. Stricter in low-margin markets; can flex to 75% in strong-comp markets.

Examples

  • $200k ARV × 70% = $140k max all-in (purchase + rehab + closing + carry).

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