House Flipping Calculator

Calculate your potential profit from a fix and flip investment. Analyze purchase price, rehab costs, holding costs, and selling expenses to determine ROI and verify the 70% rule.

Net Profit = ARV - (Purchase Price + Rehab Costs + Buying Closing + Selling Costs + Holding Costs + Financing). ROI = (Net Profit / Total Investment) * 100. 70% Rule: Max Purchase = (ARV * 0.70) - Rehab
Purchase at $180,000, rehab for $40,000, ARV $280,000, 5 months holding at $1,500/month, 8% selling costs: Total costs = $252,100, Net profit = $27,900, ROI = 12.5%. 70% rule max = $156,000 (deal exceeds by $24,000).

What is the 70% rule in house flipping?

The 70% rule states you should pay no more than 70% of the After Repair Value (ARV) minus repair costs. For example, if ARV is $300,000 and repairs cost $50,000, maximum purchase price should be ($300,000 * 0.70) - $50,000 = $160,000. This ensures adequate profit margin after all costs.

What are typical house flipping costs beyond purchase and repairs?

Key costs include: holding costs (mortgage, insurance, utilities 3-6 months), closing costs (2-3% buying, 6-10% selling with realtor), financing costs (hard money loans often 10-15% annual), permits and inspections ($2,000-$5,000), and contingency reserve (10-20% of repair budget for unexpected issues).

How long does a typical house flip take?

Most flips take 3-6 months from purchase to sale: 1-2 weeks closing, 1-3 months for renovations, 1-2 months to sell. Faster is better as holding costs accumulate. Experienced flippers aim for under 4 months total. Budget holding costs for at least 6 months as a safety margin.

What is a good profit margin for house flipping?

Target a minimum 15-20% ROI, with $20,000-$50,000+ absolute profit depending on property value. After all costs (purchase, repairs, holding, selling), aim for at least $20,000 net profit to justify the risk and effort. Premium markets or higher-value homes should yield proportionally higher returns.

Should I use cash or financing for a house flip?

Financing allows you to preserve cash and flip multiple properties simultaneously, increasing potential returns. However, it adds interest costs (hard money loans: 10-15% annual + 2-5 points). Cash eliminates financing costs but limits scale. Most professional flippers use financing to leverage capital and maximize velocity of capital.

What repairs give the best return on investment?

Kitchen and bathroom updates typically return 70-100% of investment. Fresh paint, new flooring, landscaping, and modern fixtures offer high ROI. Avoid over-improving for the neighborhood. Focus on cosmetic updates that appeal to buyers rather than structural changes unless necessary. Stick to neutral, modern styles.