1%, 50% and 70% rule check
Free real-estate rules of thumb calculator: check the 1% rule (rent vs price), the 50% rule (expenses and cash flow) and the 70% rule (maximum flip price) in seconds. Example: with typical numbers the rules passed comes to 0 of 3. Free, no sign-up, every step shown.
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Read the guide: The 1%, 50% and 70% rules in real estate: do they still work in 2026? →Rent is low for the price (1% rule). Nothing is left for cash flow after expenses and the loan (50% rule). Too expensive to flip: the 70% limit is $145,000.
In LeadCounty every property file opens this calculator with the county's value, tax owed and sales already filled in.
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In LeadCounty every property page carries its county record: value, yearly tax and any amount owed, every sale with its price, building facts, the owner and mailing address, and nearby sales (as each county publishes them). The deal calculator on each property uses them. Find the sellers with 37 seller lists, then run the deal in one place. The same calculators also run inside the app.
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How to use the 1%, 50% and 70% rule check
- 1% rule: monthly rent should be at least 1% of the price plus repairs. A quick screen for cash-flowing rentals.
- 50% rule: about half the rent goes to expenses (tax, insurance, repairs, vacancy, management). What is left must cover the mortgage.
- 70% rule: a flipper pays at most 70% of the after-repair value minus repairs. These are screens, not a full analysis.
The formula
1% rule: monthly rent ≥ 1% of price + repairs. 50% rule: operating costs ≈ 50% of rent. 70% rule: price ≤ 70% of ARV − repairs.
Worked example
With asking price of $150,000, repairs of $30,000, monthly rent of $1,700, after-repair value (ARV) of $250,000 and mortgage payment (P&I) of $850, the rules passed is 0 of 3. Rent is low for the price (1% rule). Nothing is left for cash flow after expenses and the loan (50% rule). Too expensive to flip: the 70% limit is $145,000.
Common mistakes
- Treating a rule of thumb as a final answer; it is a screen, not an analysis.
- Applying the 1% rule in markets where rents are low compared to prices.
- Using the 50% rule on a brand-new building.
Estimates for planning only, not financial advice.
Questions
Is the 1% rule still realistic in 2026?
In many expensive metros, no. Investors there accept 0.6–0.8% and rely on appreciation, or look in cheaper counties.
Why 70%?
The 30% covers closing, holding and selling costs plus the flipper's profit. In hot markets buyers may pay 75–80%.
What are the 1%, 50% and 70% rules?
The 1% rule is a rental screen on rent versus price, the 50% rule estimates operating costs at half the rent, and the 70% rule limits a flip's purchase price.
Are rules of thumb enough to buy a deal?
No. They are quick filters. Run the full calculator for the deal before you offer.
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