Step-by-step: analyzing a deal in 60 seconds
Step 1 — Choose your investment strategy
FlipIt supports four real estate flipping strategies. Select the tab that matches your deal type:
- Fix & Flip — Buy a distressed property, renovate it, and sell for a profit. FlipIt calculates net profit, ROI, annualized ROI, profit margin, and checks your offer against the 70% rule (MAO).
- BRRRR (Buy, Rehab, Rent, Refinance, Repeat) — Buy, renovate, rent, then refinance to pull out your capital. FlipIt shows equity created, monthly cash flow, cash-on-cash return, and whether you achieve an infinite return.
- Wholesale — Contract a property and assign the contract to an end buyer for a fee. FlipIt calculates your net assignment profit and checks whether the deal satisfies the 70% rule for your buyer.
- Land Flip — Buy raw land below market and resell. FlipIt shows net profit, ROI, profit margin, and your multiple on invested capital.
Step 2 — Enter your numbers
Every field has a hint explaining what to enter. Here are the most important inputs for fix and flip deals:
| Field | What to enter | Typical range |
|---|---|---|
| ARV | Estimated sale price after renovations, based on comparable sales | Varies by market |
| Purchase price | The price you are paying or negotiating | Below MAO |
| Rehab costs | Materials + labor + permits + 15% contingency | $15k–$100k+ |
| Closing costs | Buy side (~2%) + sell side (~7–8% of sale price) | $8k–$30k |
| Monthly holding costs | Taxes, insurance, utilities, HOA per month | $500–$3,000/mo |
| Hold time | Months from purchase to closing on the sale | 4–8 months |
| Financing costs | Hard money origination points + total interest | $5k–$20k |
Step 3 — Read your results
Results update in real time as you type. Here is what each metric means:
- Net profit — Your take-home after all costs. Target: $25,000+ minimum.
- ROI — Net profit divided by total invested capital. Target: 15–20%+.
- Annualized ROI — ROI scaled to a 12-month period. Useful for comparing deals of different durations.
- 70% rule / MAO check — Maximum allowable offer = ARV × 70% − rehab. If your purchase price exceeds this, the deal may be too tight.
Step 4 — Save and track your deal
Create a free account to save your analysis. After you close the deal, return to your dashboard and log the actual numbers — real sale price, real costs, and close date. FlipIt shows you exactly how your estimates compared to reality so you can sharpen future projections.
Pro tips for accurate deal analysis
- Use conservative ARV. Pull comps within ½ mile, same bed/bath count, sold within 90 days. Use the lower end of the range — buyers and appraisers will too.
- Never skip the rehab contingency. Add 15–20% to your base rehab estimate. First-time flippers routinely underestimate by 20–40%.
- Model a longer hold time. Permits, contractor delays, and slow buyer markets can stretch a 4-month project to 8. Model holding costs accordingly.
- Know your financing costs before submitting an offer. Hard money rates of 12–14% on a 6-month hold add up quickly.
- Target at least 20% ROI. You need margin for the unexpected. A 20% ROI on a 6-month flip annualizes to roughly 40%.
Frequently asked questions
What numbers do I need to use the flip calculator?
You need five core numbers: after repair value (ARV), purchase price, estimated rehab costs, closing costs, and hold time. Holding costs and financing costs improve accuracy but are optional.
What is a good profit margin on a house flip?
Most experienced flippers target a minimum net profit of $25,000–$40,000 per deal, a 15–20% ROI, and a profit margin of 10–15% of the sale price. On shorter holds, the annualized ROI matters more than the raw ROI.
How accurate is the calculator?
The calculator is as accurate as the numbers you enter. The most common source of error is underestimating ARV or rehab costs. Use conservative estimates — especially on ARV — and add a 15% rehab contingency.