Calculate the potential profitability of your house flipping investment. Estimate costs, returns, and ROI for buying, renovating, and selling properties.
A fix and flip calculator helps real estate investors estimate the profitability of buying, renovating, and selling a property. It calculates potential returns, costs, and ROI based on purchase price, rehab costs, and resale value.
ROI is calculated as (Net Profit / Total Cash Invested) × 100. Net profit is the difference between the after repair value and all costs. Total cash invested includes down payment, closing costs, holding costs, and other expenses.
Holding costs typically range from 0.5% to 1.5% of the total acquisition cost per month. This includes property taxes, insurance, utilities, and maintenance during the rehab and holding period.
Rehab costs vary widely but typically range from 20-40% of the purchase price for a standard flip. Consider getting multiple contractor estimates and add 10-20% contingency for unexpected issues.
The 70% rule states you should pay no more than 70% of the after repair value minus rehab costs. For example, if ARV is $300,000 and rehab costs $40,000, you shouldn't pay more than $200,000 for the property.
ARV is determined by researching comparable recently sold properties (comps) in the same neighborhood that have similar features and condition to what your property will be after renovations.
Common options include conventional loans, hard money loans, private money lenders, and home equity lines of credit. Hard money loans are popular for flips due to faster approval and funding.
Most flips take 3-6 months from purchase to sale. This includes 1-2 months for rehab and 1-2 months on the market. Longer timelines increase holding costs and reduce profitability.