Flip Calculator

The Real Estate Flip Calculator helps users estimate potential profits and return on investment from property flipping by calculating total investment, selling costs, net profit, and ROI based on various input fields.

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Guide to Using the Real Estate Flip Calculator

The Real Estate Flip Calculator is designed to help you evaluate a potential real estate investment by analyzing your costs, expected sale, and potential profit. Follow the steps below to use the calculator efficiently:

Step 1: Input Purchase Price

  • Locate the field labeled Purchase Price ($).
  • Required: Enter the price at which you intend to purchase the property. Ensure the value is at least $1,000.

Step 2: Input Closing Costs

  • Find the Closing Costs ($) field.
  • Required: Enter the anticipated closing costs. These can be $0 or more.

Step 3: Input Repair Costs

  • Enter your estimated costs for repairs in the Repair Costs ($) field.
  • Required: The value must be $0 or higher.

Step 4: Input Holding Costs

  • Access the Monthly Holding Costs ($) section to input expected monthly costs related to holding the property, such as mortgages or maintenance.
  • Required: These costs should be $0 or greater.

Step 5: Determine Holding Period

  • Provide the estimated Holding Period (Months), indicating how long you plan to hold the property before selling it.
  • Required: The value should be between 1 and 60 months.

Step 6: Input Expected Selling Price

  • In the Expected Selling Price ($) field, enter the price you anticipate selling the property for.
  • Required: The selling price should be at least $1,000.

Step 7: Enter Realtor Commission

  • Type in the expected realtor commission percentage in the Realtor Commission (%) field.
  • Required: This percentage must be between 0 and 10, entered in increments of 0.1%.

Step 8: Review Calculated Results

  • Once all inputs are entered, examine the following calculated results:
    • Total Investment: Computed as the sum of purchase price, closing costs, repair costs, and total holding costs. Presented in USD currency with two decimal places.
    • Selling Costs: Calculated using the formula for realtor commission and additional selling costs (2% of selling price). Displayed with currency format.
    • Net Profit: Reflects the selling price minus total investment and selling costs. Amount displayed in USD with two decimals.
    • Return on Investment (ROI): Represented as a percentage, indicating the profit relative to the total investment.
    • Monthly ROI: Indicates the ROI distributed over the holding period, shown as a monthly percentage.

By carefully following these steps, you can accurately assess the profitability of your real estate flip venture using the Real Estate Flip Calculator.