HOW TO BUY A FIX AND FLIP WITH THE 70% RULE episode artwork

EPISODE · Mar 21, 2026 · 29 MIN

HOW TO BUY A FIX AND FLIP WITH THE 70% RULE

from Property Challenge Podcast · host Terrica Lynn Smith

If you’ve been watching HGTV thinking you’re about to flip a house and make six figures in 30 days… we need to talk.In this episode of The Property Challenge Podcast, I break down the real math behind fix and flips — specifically the 70% Rule — and why understanding this formula can save you from overpaying and taking a financial haircut.When I first started in real estate, nobody handed me formulas. I learned through experience. Now I’m giving you the shortcut so you can make educated decisions instead of emotional ones.In this episode, I cover:What ARV (After Repair Value) really means and how to calculate it properlyThe 70% Rule formula step-by-stepHow to calculate your Maximum Allowable Offer (MAO)Why your profit is made when you buy — not when you sellThe biggest mistakes beginner investors make on flipsWhy you should never waive due diligenceReal costs that eat into your flip profits (realtor fees, closing costs, holding costs, contractor surprises)How to practice analyzing deals so you’re ready when opportunity comesThe formula is simple:ARV × 70% − Repairs = Maximum Allowable Offer.But discipline is what makes it powerful.Fix and flips are not what TV makes them look like. There are risks, delays, negotiations, and unexpected costs. But when you understand the numbers and respect the process, you protect your profit margin.If you’re serious about getting started in real estate investing, this episode will give you a practical framework you can use immediately.Drop a comment and let me know:Are you analyzing deals yet? What market are you investing in?Subscribe for weekly real estate conversations where we talk about the wins, the mistakes, and the real challenges behind building wealth through property.Join my Protégé community for Live Calls and Events, Exclusive Content, and to connect with like-minded investors! Now’s your time! ⏳Go Here: https://investorcircles.comLISTEN ON SPOTIFY: https://open.spotify.com/show/4SqljVgYSI2caCxeU4YmKB?si=8ce654b41b714f16FOR MORE HERE:https://www.youtube.com/@PropertyChallengePodcastFollow us on TikTok: https://www.tiktok.com/@propertychallenge?is_from_webapp=1&sender_device=pc

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HOW TO BUY A FIX AND FLIP WITH THE 70% RULE

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Frequently Asked Questions

How long is this episode of Property Challenge Podcast?

This episode is 29 minutes long.

When was this Property Challenge Podcast episode published?

This episode was published on March 21, 2026.

What is this episode about?

If you’ve been watching HGTV thinking you’re about to flip a house and make six figures in 30 days… we need to talk.In this episode of The Property Challenge Podcast, I break down the real math behind fix and flips — specifically the 70% Rule — and...

Is there a transcript available for this episode?

Yes, a full transcript is available for this episode. You can read the complete transcript on the episode page.

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