House Flip Profit Analyzer

Q: What is the 70% rule in house flipping?

The 70% rule states that a house flipper should pay no more than 70% of the after-repair value (ARV) minus repair costs. Formula: Maximum Allowable Offer (MAO) = (ARV × 0.70) − Repair Costs. Example: ARV = $300,000, repairs = $40,000. MAO = ($300,000 × 0.70) − $40,000 = $170,000. The 30% spread covers agent commissions (~6%), holding costs (~4–6%), closing costs (~3%), contingency (~5%), and target profit (~10%). Adjust the factor (65–75%) based on your specific cost structure.

Q: What is a good ROI for flipping houses?

A good ROI for house flipping is 20%+ on total cash invested per deal. Annualized ROI above 40% is considered excellent. As a dollar amount, most experienced flippers target $25,000–$75,000+ net profit per deal. Anything under 10% ROI is a thin-margin deal with high execution risk. Use the Annualized ROI metric to compare deals of different durations — a fast 3-month flip at 15% ROI is better than a slow 12-month flip at 18%.

Q: What costs do house flippers forget to include?

The most commonly forgotten costs are: (1) Buyer closing costs (1–3% of purchase price), (2) Seller closing costs and transfer taxes on the sale side, (3) Rehab contingency buffer (10–20% of rehab budget), (4) Financing origination points and total interest paid, (5) Utilities and insurance during the entire hold period, (6) HOA fees if applicable, (7) Permit fees included in rehab but often underestimated. The House Flip Profit Analyzer includes all of these as separate line items.

Q: What are typical holding costs when flipping a house?

Holding costs for house flips typically run $800–$2,500 per month depending on property size, loan type, and location. Components include: hard money loan interest (e.g. $130k loan at 11% = ~$1,192/month), property taxes (~$150–$400/month prorated), insurance (~$80–$200/month), utilities during rehab (~$100–$300/month), and HOA if applicable. On a 7-month flip these total $5,600–$17,500. Speed is profit — every extra month erodes margin.

Q: How long does it take to flip a house?

The average house flip takes 6–12 months from purchase contract to sale close. Cosmetic flips (paint, flooring, fixtures, landscaping) take 3–5 months. Mid-range renovations (kitchen, bathrooms, new systems) take 5–8 months. Full gut rehabs or structural work take 9–18+ months. Use the Timeline section to model your specific deal — purchase closing (1–2 months), rehab duration, and sale period all add to holding costs.

Q: Hard money vs. conventional loan — which is better for flipping?

Hard money is the standard choice for house flippers because it closes in 1–2 weeks (vs 30–45 days for conventional), funds investment properties, and is based on ARV not income. The cost: 9–13% interest plus 1–3 origination points. Conventional loans have lower rates (6–8%) but require owner-occupancy intent, slower closing, and may not fund distressed properties. Use the Financing tab to model both and compare total financing cost impact on your net profit.

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House Flip Profit Analyzer — Model Your Next Deal

Flip profit equals the after-repair value minus purchase price, rehab costs, holding costs, and selling costs — positive means proceed.

Full deal model: acquisition, financing, holding costs, and exit — with scenario comparison, MAO, break-even ARV, and one-click PDF export. Built for serious flippers.

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Flip Deal Analyzer

Acquisition · Financing · Holding · Exit · Scenarios

Purchase

Purchase Price ($)

Buyer Closing Costs (%) Title, escrow, inspection, misc (~1–3%)

Rehab Budget

Rehab Budget ($)

Contingency (%) Buffer for unexpected costs (10–20% typical)

Timeline

Months to Close Purchase

Rehab Duration (months)

Months to Sell After Rehab

⏱ Total Hold: 7 months (purchase close + rehab + sale period)

🔨 Use Rehab Cost Estimator →

Financing Type

💵 Cash

⚡ Hard Money

🏦 Conventional

🤝 Private Money

Cash Purchase: No financing costs. Your cash invested equals purchase price + buyer closing costs + rehab budget + holding costs. Highest ROI since you eliminate interest and points.

Loan-to-Value (LTV %) Lender covers X% of purchase price

Interest Rate (% / year)

Origination Points (%) E.g. 2 points = 2% of loan amount

💡 Hard money lenders typically lend 65–75% LTV at 9–13% interest with 1–3 points. Interest is usually interest-only during the hold period.

Down Payment (%)

Interest Rate (% / year)

Loan Term (years)

Loan Amount ($)

Interest Rate (% / year)

Origination Points (%)

Monthly Holding Costs

These are automatically multiplied by your total hold time. Loan interest is calculated from the Financing tab.

Property Taxes ($/mo) Annual tax ÷ 12

Insurance ($/mo)

Utilities ($/mo) Electric, gas, water during rehab

HOA Fees ($/mo)

Other Carrying Costs ($/mo) Security, lawn, misc

📅 Monthly Total (excl. financing): $570/mo

After Repair Value

ARV — Selling Price ($) Based on recent comps in target condition

🏗️ Calculate ARV from Comps →

Selling Costs

Agent Commission (%) Total (listing + buyer's agent)

Seller Closing Costs (%) Title, escrow, attorney fees

Transfer / Excise Tax (%) Varies by state (0–2%)

Run three versions of the same deal to stress-test your assumptions. Adjustments are applied on top of your base inputs.

Best Case

ARV Uplift (%)

Rehab Reduction (%)

Worst Case

ARV Reduction (%)

Rehab Overrun (%)

Calculates all 5 tabs instantly

Deal Analysis — Full Model

Data: ESTIMATE SEEK EXPERT ADVICE LAST UPDATED Apr 2026

Net Profit

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ROI on Cash

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Annualized ROI

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Profit / Month

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Cash-on-Cash

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Cash Needed

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Total All-In

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Profit Margin

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Deal Benchmarks

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Max Allowable Offer (70% Rule)

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Break-Even ARV

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70% Rule Status

Full Cost Breakdown

Purchase Price—

Buyer Closing Costs—

Rehab Budget—

Rehab Contingency—

Holding Costs (excl. financing)—

Financing Cost (interest + points)—

Agent Commission—

Seller Closing + Transfer Tax—

Total All-In Cost —

ARV (Selling Price) —

Net Profit —

Scenario Comparison

🟢 Best Case

🔵 Expected

🔴 Worst Case

Net Profit Comparison

Continue Your Analysis

🔨 Import Rehab Budget → ♻️ Run BRRRR Analysis → 🏠 Full Deal Analyzer 🏗️ ARV Calculator

The 70% Rule — Maximum Allowable Offer

The 70% rule limits your maximum purchase price to ensure enough margin for all costs and profit. Formula:

MAO = (ARV × 0.70) − Rehab Costs

The 30% buffer covers: realtor fees (~6%), holding costs (~4–6%), closing costs (~3%), contingency (~5%), and target profit (~10%). Experienced flippers adjust the rule (65–75%) based on their cost structure and market speed.

Frequently Asked Questions

What is the 70% rule in house flipping? +

The 70% rule states you should pay no more than 70% of ARV minus rehab costs. Example: ARV $300k, rehab $40k → MAO = ($300k × 0.70) − $40k = $170,000 maximum offer. The rule ensures a ~30% spread to cover all costs and profit.

What is a good ROI for house flipping? +

Target a minimum 20% ROI on total cash invested per deal. Annualized ROI above 40% is excellent. Experienced flippers target $25,000–$75,000+ net profit per deal. Anything under 10% ROI is a thin margin deal with high execution risk.

What are typical holding costs when flipping? +

Holding costs run $800–$2,500/month depending on property size, loan type, and location. A 7-month flip at $1,200/month = $8,400 in holding costs. Hard money interest alone on a $130k loan at 11% = ~$1,192/month. Every extra month costs money — speed is profit.

Hard money vs. conventional for flipping — which is better? +

Hard money loans close in 1–2 weeks (vs 30–45 days for conventional) and allow investment property flips. The trade-off: higher interest (10–13%) and origination points (1–3%). Hard money is standard for flippers; conventional works for owner-occupied or long-term holds. Use the Financing tab to compare the cost impact on your deal.

What costs do flippers forget to include? +

Common overlooked costs: (1) Buyer closing costs (1–3%), (2) Seller closing costs + transfer taxes, (3) Holding costs every single month, (4) Rehab contingency (10–20% buffer), (5) Financing points/origination fees, (6) Utilities and insurance during rehab, (7) Permit fees. This analyzer includes all of them.

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Financial estimates only — not professional advice. Results are calculated projections based on your inputs. Flip profit projections are estimates based on your inputs. Actual results depend on market conditions, contractor costs, and execution time. Real estate investments involve risk. Consult a licensed financial advisor, CPA, or real estate attorney before making investment decisions. Full disclaimer →

Related Calculators & Tools

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ARV Calculator Calculator

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Rehab Cost Estimator Calculator

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Cash Flow Calculator Calculator

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BRRRR Calculator Calculator

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Deal Analyzer Tool

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Market Intelligence Report

📖 House Flipping Guide 🏚️ Best House Flipping Software List ⚖️ Compare House Flipping Software 🏗️ ARV Strategy Guide

Comparing house flipping software? See which tools include ARV calculation, rehab estimating, and project management. 🏚️ Top Ranked List → Full comparison →

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