How does the calculator work?
This calculator gives you a basic overview of what you should pay for a flip based on the repairs needed and the ARV (after repaired value). The calculator is based on the 70 percent rule, which is very close to what I pay for most of my flips. I can actually pay a little more because I am an agent and save money on commissions. The 70 percent rule states you should pay 70 percent of the ARV minus any repairs needed.
Simply plug in the ARV and the repairs needed into the calculator and it tells you what you should pay for the house.
I have flipped over 209 homes in my career and you can see my current flips here: Fix and Flip Scoreboard.
Should you rely on calculators or the 70 percent rule to buy flips?
This is a basic calculator, I would always suggest writing all the numbers out when you are looking at a flip. The 70 percent rule can give a very good idea about the possibility of a property making a good flip. However, each house is unique and I prefer to think about each cost, and not use a blanket rule for everything. On some houses, I will pay more and others less than what the 70 percent rule says I should pay.
For more information and instruction on flipping, check out my book:
- Fix and Flip Your Way to Financial Freedom Finding, Financing, Repairing and Selling Investment Properties.