Wholesale Deal Analyzer

The 70% rule is a wholesale pricing heuristic: maximum allowable offer (MAO) = (ARV × 70%) − repair costs. The 30% buffer covers the end buyer's closing costs, holding costs, sale costs, and profit. The rule of thumb flexes — 75-80% in hot markets and 60-65% in slower or higher-risk ones.

Best is a contractor walkthrough or detailed estimate from someone who has rehabbed similar properties in the same market. Less ideal but workable: a per-square-foot estimate based on the level of work — light cosmetic ($15-25/sqft), medium ($25-50/sqft), heavy or full-gut ($50-100+/sqft). Underestimating repairs is the #1 reason wholesale deals fail.

Not included: end-buyer specific costs that vary (their hard money points, their closing costs, their hold timeline), market trajectory (rising or falling values during rehab), unknown title or environmental issues, and inspection-period surprises. Treat the output as a directional first pass — final pricing should always involve real comps and a contractor walkthrough.

No. Use 75-80% in hot markets where end buyers compete for inventory. Use 60-65% in slower markets, on properties needing major rehab, or in less-tested zip codes. Adjust based on actual buyer feedback in your market — if buyers consistently want a deeper discount, your multiplier needs to drop.

Pull 3-5 recently sold comps within roughly 0.5 miles, sold within the last 90-120 days, with similar square footage (within 20%), bedroom count, and condition. Average their sale-price-per-square-foot, multiply by your subject property's square footage. Adjust up or down for differences in lot size, garage, layout, etc. See our glossary for more on ARV.