House flip calculator

Two tools for a flip

Start free: use the ROI calculator to see which renovations recoup the most of their cost, so your rehab budget goes to upgrades that help resale and move the property faster.

Then underwrite the deal: the Renovation Deal Analyzer runs the full flip P&L, a 70%-rule max offer, rehab scope, a sensitivity grid and a plain-English verdict — plus a BRRRR tab for refinance-and-hold.

Underwrite before you bid

The margin on a flip is made on the buy. Model the numbers first — purchase, rehab, holding and selling costs against after-repair value — so you only bid on deals that actually pencil.

The anatomy of a profitable flip

A flip's profit isn't just the difference between purchase price and sale price — it's what's left after four cost categories eat into that spread. Purchase costs include the acquisition price plus closing costs, title insurance, inspection fees and any finder or assignment fees. Rehab costs cover materials, labour, permits, dumpster rental and the contingency buffer for surprises. Holding costs are everything you pay while the property sits unsold: mortgage or hard-money interest, property taxes, insurance, utilities, HOA dues and lawn maintenance. Selling costs include agent commissions (typically 5–6% of sale price), closing costs, staging, photography and any buyer concessions.

On a typical flip, holding costs alone can run $2,000–$5,000 per month depending on the market and financing. A project that takes two months longer than planned doesn't just delay your payday — it adds $4,000–$10,000 in costs that come straight off your profit. This is why experienced flippers obsess over timelines: the longer you hold, the thinner the margin gets.

The difference between a profitable flip and a break-even one is usually not the rehab quality — it's whether the investor accurately modelled all four cost buckets before making an offer. The Deal Analyzer runs the full P&L so you see the real margin, not just the gross spread.

Which renovations move the needle on a flip

Flip renovations serve a different purpose than homeowner renovations. You're not building your dream home — you're creating a product that photographs well, shows well, and sells fast at a price the market supports. Every dollar of rehab needs to pull its weight in either increasing the after-repair value or reducing the days on market. Cosmetic updates dominate successful flip budgets for this reason.

The highest-impact flip renovations are consistently: interior paint (neutral, modern tones), new flooring throughout (luxury vinyl plank is the current standard for its cost-to-impact ratio), updated kitchen surfaces (counters, cabinet paint or refacing, hardware, backsplash), refreshed bathrooms (vanity, fixtures, mirror, re-grout or re-tile), new light fixtures, updated landscaping and a clean exterior. These items touch every room a buyer walks through and create a move-in-ready impression.

What doesn't usually pay on a flip: high-end appliances (mid-grade stainless is enough), custom cabinetry (stock or semi-custom is fine for the target price point), elaborate tile patterns, smart-home systems beyond a basic thermostat, and any finish that exceeds what comparable recent sales in the neighbourhood delivered. The goal is to match or slightly exceed the comp set — never to blow past it.

The 70% rule explained

The 70% rule is a back-of-napkin formula that flippers use to set a maximum purchase price. It says: pay no more than 70% of the property's after-repair value (ARV), minus the estimated rehab cost. The remaining 30% of ARV is your buffer for holding costs, selling costs and profit.

Here's a worked example. You find a property in a neighbourhood where updated comps sell for $300,000. Your estimated rehab is $40,000. The 70% rule says your maximum offer should be ($300,000 × 0.70) − $40,000 = $170,000. If you buy at $170,000, spend $40,000 on rehab, and sell at $300,000, the $90,000 spread covers your holding costs, selling costs (roughly $18,000 in commissions and closing costs), and leaves a profit.

The 70% rule is a screening tool, not a business plan. In competitive markets, many investors accept thinner margins and use 75% or even 80% of ARV. In slower or riskier markets, experienced flippers insist on 65% or lower. The Deal Analyzer calculates your 70%-rule max offer automatically and shows the full P&L so you can decide whether to adjust the threshold for a specific deal.

Common first-flip mistakes

Underestimating holding costs is the most common way a first flip goes sideways. New investors calculate purchase plus rehab and assume the rest is profit, forgetting that every month the property sits unsold costs money in interest, taxes, insurance and utilities. A flip that takes six months instead of three doesn't just delay the return — it can erase it entirely if the margins were thin to begin with.

Over-renovating for the neighbourhood is the second classic mistake. Installing $5,000 quartz counters and $8,000 in bathroom tile in a neighbourhood where comps have laminate and basic ceramic doesn't raise the sale price to cover the premium — it just makes you the most expensive house on the block with the smallest buyer pool. Always renovate to the comp set, not above it.

The third mistake is not having an exit strategy before the purchase. What if the market softens and you can't sell at your target ARV? Can you rent the property and cover costs? Would you break even if you sold for 10% less? Experienced flippers stress-test the deal at multiple price points before bidding. The Deal Analyzer's sensitivity grid does exactly this — it shows your profit at different ARV and rehab scenarios so you can see where the deal breaks.

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