What Is the Most You Should Pay?
Stop starting from the asking price. Set the returns you need — cash flow, cash-on-cash, cap rate, DSCR — and this tool solves for the highest price that still delivers them, and tells you which target sets the ceiling.
Above this price you miss your Cash-on-cash ≥ 8% target — it's the constraint that binds. Bring this number to the negotiation.
Max price for each target
| Target | Max price |
|---|---|
| Cash flow ≥ $0/mo | $301,804 |
| Cash-on-cash ≥ 8%binds | $219,176 |
| DSCR ≥ 1.2 | $271,544 |
Your overall maximum is the lowest of these — the price that keeps every target satisfied at once.
The 70% rule (flippers & BRRRR)
Enter an after-repair value (and repair budget) in the form to see the 70% rule maximum allowable offer — the standard for flips and BRRRR deals.
Price is an output, not an input
A property's income is fixed by its rent and expenses — but every return metric gets worse as the price rises, because you borrow more and tie up more cash. So for any target you name, there's a single price above which you no longer hit it. Your overall maximum is simply the lowest of those prices: the point where the first target breaks.
This is the number professional investors anchor to. It turns "the list price is $250,000, is that fair?" into "my numbers work up to $219,000, so that's my ceiling" — a far stronger position to negotiate from.
Two ways to cap your offer
Return-target price (buy & hold)
The max price that still meets your cash flow, cash-on-cash, cap rate, and DSCR targets. The right ceiling when you're keeping the property for the income.
70% rule (flip & BRRRR)
70% of after-repair value minus repairs. The standard when you're forcing equity through a rehab and plan to refinance or resell. Enter an ARV to see it.
The 70% rule, explained
The 70% rule is the flipper's and BRRRR investor's shorthand for a maximum offer:
Max offer = (After-Repair Value × 70%) − Repair CostsA property worth $300,000 after a $40,000 rehab gives a max offer of ($300,000 × 0.70) − $40,000 = $170,000. The 30% you hold back isn't profit — it's the buffer that absorbs holding costs, financing, selling costs, and the margin that makes the risk worth taking. Enter an after-repair value in the form and the calculator computes this for you.
It's a fast, conservative screen, not a precise analysis: the right discount varies with your market, your costs, and how quickly you can turn the property. For a long-term hold, the return-target ceiling above is the more relevant number — the 70% rule is about forcing and capturing equity, not about years of rent.
Turning your maximum into a negotiation
Knowing your ceiling changes how you negotiate. Instead of reacting to the list price, you're measuring every counteroffer against a number that protects your returns. A few ways investors use it:
- Open below your maximum — Your ceiling is where the deal stops working — never your first offer. Leave room, and let the maximum tell you when to walk.
- Anchor with the analysis — "My numbers work to $219,000" is a stronger position than "that seems high." A rationale rooted in cash flow and returns is hard to argue with.
- Let the binding target guide you — If cash-on-cash is what caps your price, a small rent increase or a better interest rate can lift the ceiling — sometimes more effectively than haggling on price.
- Know when to pass — If the seller won't come down to your maximum, the discipline is in walking away. A ceiling you're willing to enforce is the whole point of calculating one.
Frequently asked questions
How do I decide how much to offer on a rental property?
Instead of starting from the asking price, start from the return you need. Decide your minimum cash flow, cash-on-cash return, and DSCR, then solve for the highest price that still delivers all of them. That price — not the list price — is your ceiling. This calculator does that math and shows which target sets the limit.
What is the 70% rule?
The 70% rule is a flipper and BRRRR rule of thumb: your maximum offer is 70% of the after-repair value (ARV) minus repair costs. It builds in a margin for holding costs, selling costs, and profit. It answers a different question than a buy-and-hold analysis — it's about forcing and capturing equity, not long-term cash flow — so this tool shows both.
How is this different from the 1% rule?
The 1% rule is a quick screen (monthly rent ≥ 1% of price); it's a yes/no gut-check, not a price. This calculator is precise: it solves for the exact maximum price that meets the specific return targets you set, and tells you which target is binding.
What if no price meets my targets?
That happens when the property's income simply can't support your requirements — for example, the rent is too low to ever produce your target cash-on-cash return, at any price. The tool says so directly. Your options are to raise the achievable rent, relax the target, or pass.
Should I always offer my maximum price?
No — your maximum is a ceiling, not an opening bid. It's the number that protects your returns, so you never talk yourself above it in a negotiation. Where you open is a separate strategy call based on the market and the seller.
How is the maximum offer different from an appraisal or market value?
An appraisal estimates what a property is worth to the market. Your maximum offer is what it's worth to you, given your specific targets, financing, and expenses. Two investors can have very different maximums on the same property — and both can differ from the appraised value. The market sets a range; your numbers set your ceiling within it.
What if the maximum offer is above the asking price?
That means the property meets your targets with room to spare — the deal is attractive at list price. It doesn't mean you should offer more than asking; it means you have a margin of safety and negotiating flexibility. In competitive markets, knowing you could still hit your targets slightly above asking can help you win a bid without overpaying by your own standard.