1. Purchase Price: You want the purchase price to be 30% under the After Repair Value (ARV). This gives you a buffer for profits and unexpected expenses. 2. Rehab Costs: Your rehab costs should be less than 40% of the ARV. Keeping the renovation budget in check is crucial for maintaining profitability. Using these guidelines can help ensure you’re not overpaying and that you’ve got enough room for repairs and profit.