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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.

Формула

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

Водич корак по корак

  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

Worked Examples

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

Common Mistakes to Avoid

  • Underestimating holding costs
  • Forgetting closing costs on both sides

Подешавања