Real estate & rental
Real Estate Fix and Flip Calculator
Profit on a flip after every cost, including the holding costs most projections leave out.
Result
Holding costs and budget overruns are what turn projected flips into losses, and both scale with time. A project running three months late pays three extra months of interest, taxes and insurance while the rehab budget has usually already been exceeded. The 70% rule is a screening heuristic, not a valuation method.
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About this calculator
What is the 70% rule?
Offer no more than 70% of after repair value minus the rehab cost. It is a quick filter that builds in profit and a margin for error, not a precise calculation.
How much overrun should I allow?
Ten to twenty percent on a familiar property type, considerably more on an older building where opening walls reveals surprises. Experienced flippers budget for it rather than hoping.
Why does time matter so much?
Because holding costs accrue whether or not work is happening. A six month project stretching to nine adds three months of interest, taxes, insurance and utilities to a profit that was already thin.
The formula
profit = ARV - purchase - rehab with overrun - buying costs - holding costs - selling costs
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