Inputs
Hard money or private loan rate
Agent commissions + closing costs
Results
Net Profit
$34,400
ROI on Cash Invested
68.80%
More details
ℹ️ Purchase price exceeds the 70% rule threshold — review carefully.
How to Use
- 1Enter your purchase price (what you'll pay for the distressed property).
- 2Input your estimated rehab / renovation budget.
- 3Set the After Repair Value — what the property will sell for after rehab.
- 4Enter your expected holding period and financing costs.
- 5Compare your profit to the 70% rule benchmark to validate the deal.
Frequently Asked Questions
What is the 70% rule for house flipping?+
The 70% rule states that investors should pay no more than 70% of the ARV minus repair costs. On a home with $300K ARV and $50K rehab, the max offer is $160,000. This leaves enough margin for profit and unexpected costs.
What are hard money loans?+
Hard money loans are short-term, asset-based loans from private lenders used for fix-and-flip projects. They charge higher rates (9–12%) but close quickly (days vs. weeks) with fewer qualification requirements.
What is After Repair Value (ARV)?+
ARV is the estimated market value of the property after all planned renovations are complete. It's determined by comparable sales of renovated properties in the same area. ARV is the most critical number in any flip analysis.
What are typical holding costs?+
Holding costs include financing interest, property taxes, insurance, and utilities during the renovation and sale period. For a 6-month flip, holding costs typically run 3–6% of the purchase price depending on your financing rate.
Is a 20% ROI good for a flip?+
A 20% ROI over 6 months equates to a 40% annualized return — exceptional by any investing standard. Most experienced flippers target 15–30% net profit per deal. Thin margins leave little room for budget overruns.
This calculator is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making real estate or financial decisions.