How a Landlord Uses the 70 Percent Rule to Vet Rentals

In this episode of The Real Estate Investing Podcast, Lucas and Luna explore the 70 percent rule—a lesser-known but powerful guideline for vetting rental properties. Unlike the more famous 1 percent or 2 percent rules, the 70 percent rule focuses on after-repair value and renovation costs, helping investors avoid overpaying for fixer-uppers. Through a detailed case study of a duplex in a mid-sized Midwest city, they walk through the math: purchase price, repair budget, ARV, and the crucial margin for profit and unexpected hiccups. Lucas explains how the rule originated from house flipping but has been adapted for buy-and-hold landlords, while Luna shares a cautionary tale of a friend who ignored the rule and paid the price. They also discuss when to break the rule—like in hot markets or with value-add opportunities—and emphasize that it's a framework, not a hard law. The episode includes practical tips for applying the rule yourself, common mistakes, and a reminder to always stress-test your numbers. Perfect for landlords and aspiring investors looking to make smarter purchase decisions in any market. #70PercentRule #RealEstateInvesting #RentalProperties #HouseFlipping #FixAndFlip #LandlordTips #PropertyVetting #RealEstateMath #BuyAndHold #RenovationBudget #AfterRepairValue #DuplexInvesting #CashFlow #RealEstateWealth #Finance #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo