How to Use the House Flipping Calculator?

1. Enter the Purchase Price: Input the amount you plan to pay for the property. This should be the total cost, including any closing costs or fees associated with the purchase.

2. Estimate Rehab Costs: Calculate and enter the total amount you expect to spend on renovations and repairs. This should include materials, labor, permits, and any other expenses related to improving the property.

3.  Input Holding Costs: Estimate and enter the costs you’ll incur while owning the property before selling. This may include property taxes, insurance, utilities, and loan interest if you’re financing the purchase.

4. Calculate Selling Costs: Enter the estimated expenses associated with selling the property, such as real estate agent commissions, closing costs, and any concessions you might offer to the buyer.

5. Determine the After Repair Value (ARV): Research comparable properties in the area and estimate what your property will be worth after renovations are complete. This is a crucial figure, as it directly impacts your potential profit.

6. Click “Calculate Flip”: Once you’ve entered all the required information, click the calculate button to see your results. The calculator will display your total investment, potential profit, and return on investment (ROI). The total investment is the sum of all your costs, while the potential profit is the difference between the ARV and your total investment. The ROI shows your profit as a percentage of your total investment.

Please note that this calculator provides valuable insights, it’s based on estimates and projections. Real-world factors such as market fluctuations, unexpected repair issues, or changes in holding time can affect your actual results. Always conduct thorough due diligence and consider consulting with real estate professionals before making investment decisions.