Real Estate Math
A Nevada property needs $45,000 in repairs. After repairs, it will be worth $320,000. If the investor uses the 70% rule and requires $45,000 in repair costs, what is the maximum offer?
A$179,000✓ Correct
B$184,000
C$224,000
D$152,150
Explanation
70% rule: Maximum offer = (ARV x 70%) – Repairs = ($320,000 x 0.70) – $45,000 = $224,000 – $45,000 = $179,000.
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