House Flipping Profit Calculator
Flip Deal Analysis
Analyze a house flipping deal for profit potential
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70% Rule (MAO)
Calculate Maximum Allowable Offer using the 70% rule
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Formula
Profit = ARV - Purchase Price - Rehab - Closing Costs - Holding Costs - Selling Costs
Frequently Asked Questions
What is the 70% rule in house flipping?
The 70% rule states that investors should pay no more than 70% of the After Repair Value (ARV) minus repair costs. For a home with $320,000 ARV and $50,000 in repairs: $320,000 x 0.70 - $50,000 = $174,000 maximum purchase price.
What is a good profit margin on a house flip?
Most successful flippers aim for a minimum profit of $25,000-$30,000 or a 10-20% return on total investment. The average profit on a house flip in the U.S. is around $50,000-$70,000, but results vary greatly by market and deal quality.
What are common house flipping expenses?
Key expenses include purchase price, renovation costs, closing costs (2-5% both buying and selling), agent commissions (5-6%), holding costs (loan payments, insurance, taxes, utilities), and permits. Unexpected repairs are common, so add a 10-20% contingency to rehab estimates.
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