An alumna of Concordia College in Moorhead, Minnesota, Desiree Marvin has held various positions with Marvin, a family-owned business that produces windows and doors. Currently, she serves as a workspace researcher where she investigates employees’ experiences in the workspace, examines ways to improve them, and creates scenarios that meet employee needs. When not working, Desiree Marvin pursues her other interests, such as house flipping.

House flipping is an investment strategy wherein an investor buys a house, holds onto it for a short time, and then sells it at a higher price for profit. Typically, the investor renovates the house to make it market-ready before selling it.

The goal of house flipping is to buy low and sell high. To ensure that the sales price of the house is right, experienced house flippers operate on the “70 percent rule.” In house flipping, the “70 percent rule” is a general, guideline, although it cannot replace a well-researched market. So how does the “70 percent rule” work?

The “70 percent rule” says the investor should not spend more than 70 percent of the house’s after-repair value (ARV) minus renovation costs and other expenses. The ARV represents the amount the house could be sold at its market-ready state.