House Flipping Calculator — ARV, Rehab & Profit
Net Profit
--
ROI
--
Total Investment
--
70% Rule Max Purchase
--
How to Analyze a House Flip
The key metric in house flipping is the After Repair Value (ARV) - what the property will be worth after renovation. The popular 70% rule says you should pay no more than 70% of ARV minus repair costs: Max Purchase = ARV x 0.70 - Rehab Costs.
Total investment includes purchase price, rehab costs, holding costs (mortgage, taxes, insurance, utilities during renovation), and selling costs (agent commissions, closing costs, typically 8-10% of sale price). Your profit is ARV minus total investment.
Successful flippers target a minimum 15-20% ROI to account for unexpected costs. Most rehab budgets should include a 10-20% contingency for surprises. Holding time is critical - every extra month adds mortgage, tax, and insurance costs.
Frequently Asked Questions
What is the 70% rule in house flipping?
The 70% rule states: Maximum Purchase Price = ARV x 70% - Repair Costs. For a home with $300K ARV and $40K in repairs: $300K x 0.70 - $40K = $170K maximum purchase price.
What is a good profit on a house flip?
Most experienced flippers target $25,000-50,000 profit per flip or a 15-25% ROI. Profit below $15,000 may not justify the risk and effort involved.
What are typical closing costs when selling a flip?
Seller closing costs typically total 8-10% of the sale price: 5-6% real estate agent commissions, 1-2% transfer taxes, and 1-2% other closing costs (title insurance, attorney fees).