PropdealcalcFix and flip calculator
Estimate what a flip really makes once every cost is in: buying, repairs, the months you hold it, loan interest and fees, and the cost of selling.
$
$
$
$
months
$per month
Tax, insurance, utilities.%
% a year
% of loan
% of ARV
Profit$36,800
Return on cash49.7%Annualized 124.0%
Profit margin11.2%Profit ÷ ARV
Cash needed$74,100
70% rule: most to pay$186,000
| Purchase and buying costs | $205,000 |
| Repairs | $45,000 |
| Holding costs | $5,400 |
| Loan interest | $10,780 |
| Loan fees | $3,920 |
| Selling costs | $23,100 |
| Total cost | $293,200 |
The 70% rule
A common rule of thumb: pay no more than 70% of the after-repair value (ARV) minus the repair costs. The 30% margin is meant to cover holding, financing and selling costs and leave a profit. In expensive markets flippers often accept less, which makes accurate numbers more important.
Costs people forget
- Holding costs every month: tax, insurance, utilities, loan interest.
- Selling costs: agent commission, transfer tax, closing costs, often 6% to 10% of the price.
- Delays: each extra month adds holding costs. Try the numbers with two or three more months.
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