How does the house flipping 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.
I have flipped over 155 homes in my career and you can see my current flips here: Fix and Flip Scoreboard.
Housing flipping calculator:
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: