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House flipping calculates profit on real estate investment by accounting for purchase price, renovation costs, holding costs, and selling expenses. Annualized ROI shows return rate.

Formel

Profit = Sale price - (Purchase + Rehab + Holding + Closing costs)

Trin-for-trin guide

  1. 1Enter purchase price, rehab cost, hold time, sale price
  2. 2Calculate monthly holding costs (taxes, insurance, utilities)
  3. 3Subtract all costs from sale price to find profit

Løste eksempler

Input
Buy: $200k, Rehab: $50k, Hold: 6mo, Sell: $320k
Resultat
Profit ≈ $40k
After ~$30k holding and closing costs

Almindelige fejl at undgå

  • Underestimating holding costs
  • Forgetting closing costs on both sides

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