Fix and Flip Profit Estimator

How to calculate Fix and Flip profit?

Net profit is the ARV minus all acquisition, rehab, holding, and selling expenses.

Net Profit = ARV - (Purchase + Rehab + Holding + Selling Costs)

Using the Estimator: an example

Example: A property bought for $200,000 with $50,000 in rehab costs and a $350,000 ARV.

Step-by-step calculation:

• Calculate total costs ($200k purchase + $50k rehab + $10k holding + $21k selling = $281,000)
• Subtract total costs from ARV ($350,000 - $281,000)
• Determine Net Profit ($69,000) and ROI (24.5%)

Frequently Asked Questions

What is the 70% Rule?

It is a guideline suggesting investors should pay no more than 70% of the ARV minus repair costs.

What are holding costs?

These include property taxes, insurance, utilities, and loan interest paid while the property is being renovated.