Fix-and-Flip Deal Analyzer
Every flip lives or dies on the spread between what you put in and what the market gives back. This analyzer takes the five numbers that decide it — purchase, rehab, after-repair value, holding costs, and selling costs — and returns net profit, profit margin, and return on the cash you have at risk. If the spread is thin here, no financing structure fixes it.
Estimate — illustrative only. Not a quote, an approval, an appraisal, or a projection of results. Defaults are placeholders, not RECR figures; the ARV must be independently supported by comparable sales before any of these numbers mean anything.
What Each Input Is Really Measuring
A flip has exactly one source of money — the resale — and a stack of costs standing between you and it. The analyzer models that stack honestly, because the mistakes that sink flips are almost always costs left out, not revenue overestimated. Well, both happen — but an inflated ARV and a forgotten cost line are the two classics, and this tool puts them side by side where you can see them fight.
- Purchase price is your contract basis — what you actually pay to acquire, not the asking price or the tax value.
- Rehab budget is the full line-item cost to bring the property to resale condition, contingency included. Build it in the rehab budget worksheet first.
- After-repair value (ARV) is the defensible resale price the finished property supports — the number an appraiser and a buyer will both stand behind, not the optimistic top of the range.
- Holding costs are everything the project bleeds while you own it: loan cost, taxes, insurance, utilities, and the price of every extra month on market.
- Selling costs are commissions, closing, and concessions — modeled as a percentage of ARV because that is how they scale.
Profit, Margin, and ROI Are Three Different Questions
Net profit is the dollars left over: ARV minus purchase, rehab, holding, and selling costs. It is what you keep if everything goes to plan.
Profit margin is that profit as a share of ARV. It answers "how much room does this deal have?" A wide margin can absorb an overrun, a soft market, or an extra month of holding; a thin margin means any one of those turns a winner into a loss. Margin is the single best measure of how much a deal can go wrong and still survive.
ROI is profit divided by the cash you actually put in. This is where financing changes the picture entirely. Fund most of the deal and keep your own cash small, and the same dollar profit lands on a much smaller base — the return on your capital climbs. It is the difference between a deal that is merely profitable and one that is worth your limited cash. See how RECR structures the capital side on fix-and-flip financing.
The Full Arithmetic on One Deal
This is exactly what the analyzer computes. The relationships are real; only the numbers are illustrative.
| After-repair value (ARV) | $330,000 | Supported by comparable sales |
|---|---|---|
| Purchase price | $180,000 | Contract basis |
| Rehab budget | $55,000 | Line-item, contingency included |
| Holding costs | $12,000 | Taxes, insurance, utilities, capital cost |
| Selling costs (8% of ARV) | $26,400 | Commission, closing, concessions |
| Total project cost | $273,400 | Everything between you and the sale |
| Estimated net profit | $56,600 | ARV minus total project cost |
| Profit margin (÷ ARV) | 17.2% | How much room the deal has |
| ROI (on $70,000 cash-in) | 80.9% | Return on the cash you risked |
Now stress it. Hold the same purchase and rehab but drop the ARV to $305,000 — a market that came in softer than your comps promised — and the profit falls by roughly $23,000 while selling costs shrink only slightly, because most of the stack is fixed. That is the asymmetry every flipper learns eventually: costs are rigid and the exit is not, so a deal needs enough margin to survive an ARV that disappoints. A project analyzed at a 17% margin can weather that miss; one analyzed at 6% cannot.
Before you rely on any of this, set your maximum purchase price so the margin is built in from the offer, not hoped for afterward — run the numbers through the maximum allowable offer calculator. And where a deal is strong but your cash is committed elsewhere, a joint-venture structure can fund the stack instead — see 100% purchase and rehab funding.
Questions About Analyzing a Flip
What profit margin makes a flip worth doing?
There is no fixed threshold, but the principle is that margin has to be wide enough to survive the things that go wrong — an overrun, a slow sale, an ARV that comes in under your comps. A margin thin enough that a single surprise erases it is not a deal with a small profit; it is a deal with a large chance of a loss. Give yourself room.
Why are selling costs a percentage of ARV instead of a flat amount?
Because the biggest components — agent commission and buyer concessions — scale with the sale price. A percentage of ARV tracks that automatically, so a higher-value flip carries a proportionally higher selling cost. Eight percent is a common planning figure that covers commission, closing, and typical concessions, but you should use whatever your market and strategy actually require.
What should I include in holding costs?
Everything the property costs you while you own it and are not yet selling: financing cost, property taxes, insurance, utilities, and any staging or maintenance during the marketing period. The single biggest driver is time — every extra month on market adds another month of all of it, which is why an optimistic timeline is one of the most expensive mistakes in a flip.
How does financing change the ROI?
Profoundly. Net profit and margin depend on the deal; ROI depends on how much of your own cash is in it. Fund more of the purchase and rehab and keep your cash-in small, and the same profit is measured against a smaller base, so the return on your capital rises. It also lets one pool of cash run several deals instead of one. That leverage is the entire point of using capital rather than your own balance sheet.
Why does the ARV matter more than any other input?
Because it is the only number you do not control and the one everything else is measured against. Purchase and rehab are costs you can manage; ARV is the market's verdict, delivered at the worst possible time to be wrong about it. An inflated ARV makes every other number look fine right up until the property does not sell. Support it with real comparable sales, not the top of the range.
Does a strong result here mean the deal is approved?
No. This is a planning estimate, not an underwriting decision. A promising spread is a reason to take the deal to a real review, where the ARV, budget, and exit are tested against evidence. Submit the deal and let the numbers meet scrutiny.
Spread Holds Up? Fund It.
If the margin has room and the ARV is supported, the next step is capital that keeps your ROI high. Send the deal for a first read.