Hampton Luzak has worked in several different industries. A one-time creative director's assistant, she has also been a marketing/sales person at Carlisle, New York. As a personal project, Hampton Barringer Luzak owns a historical house renovation and house flipping business.
House flipping is a type of real estate investment that involves buying a low-value property and improving its value by renovating and upgrading it before reselling it for a higher price than it was bought. The holding period for low-value properties is usually short, less than a year, meaning a flipper has little time to renovate and resell to make a profit.
Every house flipper knows that you have to follow the golden rule of house flipping. This is known as the 70 percent rule, which simply states: do not buy a property for more than 70 percent of its after-repair value, or ARV, minus the cost of renovations. The ARV is the price you estimate the property will sell after renovations. To calculate the maximum amount to buy a property, you need to multiply the ARV by 70 percent and then minus the estimated cost for renovations.
