🔨 House Flip Pro Forma Generator

The 70% rule says you should pay no more than 70% of the After-Repair Value (ARV) minus your rehab costs. Formula: Maximum Purchase Price = (ARV × 0.70) − Rehab Costs. Example: If ARV is $300,000 and rehab is $50,000, max purchase = ($300,000 × 0.70) − $50,000 = $160,000. This rule ensures enough margin to cover holding costs, selling costs, and profit.

Beyond purchase and rehab, budget for: closing costs to buy (1–3%), holding costs (property taxes, insurance, utilities, loan interest — typically 1–2% of purchase price per month), selling costs (5–8% of ARV for agent commissions, transfer taxes, and closing), and a rehab contingency buffer of 10–20% for unexpected issues. Many first-time flippers underestimate holding and selling costs.

ARV is the estimated market value of a property after all repairs and improvements are completed. It's determined by analyzing comparable sales (comps) — recently sold similar properties in the same neighborhood, adjusted for size, condition, and features. Get an ARV estimate from a local real estate agent, appraiser, or by running comps yourself on Zillow/MLS. ARV is the most critical number in any flip analysis.

Most experienced flippers target a minimum net profit of $25,000–$40,000 per deal, or an ROI of 15–25%+ on total invested capital. Annualized ROI matters too — a 20% ROI on a 3-month flip annualizes to 80%. Deals below $20,000 net profit are often not worth the effort and risk. Your minimum should account for your time, risk, and the opportunity cost of your capital.

A house flip pro forma is a financial projection document that estimates all acquisition costs, rehab costs, holding costs, selling costs, and net profit for a fix-and-flip project. Investors use it before buying to evaluate whether a deal meets their profit requirements. It includes a 70% rule check, ROI calculation, and often a sensitivity analysis showing how profit changes if ARV comes in lower or rehab costs run over.