ARV & Flip ROI Calculator
Calculate After Repair Value and flip ROI for house flipping projects. Analyze profit potential and return on investment.
How it works
Profit = ARV - Purchase Price - Rehab - Holding - Selling Costs. ROI = (Profit ÷ Total Investment) × 100.
Example
$250K ARV - $150K purchase - $30K rehab - $10K costs = $60K profit, 32% ROI.
FAQ
What is ARV in house flipping?
After Repair Value - the estimated market value of the property after all renovations are complete. ARV is typically determined by comparable sales of similar renovated properties.
What's a good ROI for house flips?
20-30% ROI is generally considered good, with 15%+ being acceptable. Higher returns compensate for the risk, effort, and capital requirements of flipping.
What holding costs should I include?
Insurance, property taxes, utilities, loan interest, and opportunity cost of capital. Don't forget permits, inspections, and temporary housing if needed.
How accurate should my ARV estimate be?
Very accurate. A 10% ARV overestimate can turn a profitable flip into a loss. Use recent comparable sales and consider hiring a professional appraiser for expensive projects.
What's the 70% rule in house flipping?
Buy at 70% of ARV minus rehab costs. This rule provides a buffer for unexpected costs and ensures adequate profit margins, though it may be too conservative in hot markets.