Question 1

What is a good ROI on a fix and flip?

Accepted Answer

Most active flippers target 15–25% ROI per project, meaning $30k–$50k net profit on a $150k–$200k all-in basis. Home runs exceed 30% but are not the expected baseline. Less than 15% usually means either the purchase was too high, the rehab blew the budget, or holding costs ate the margin.

Question 2

How long does a typical flip take?

Accepted Answer

Four to nine months end-to-end. Light cosmetic flips can complete in three months. Full gut rehabs often run nine to twelve months. Contractor delays, permit wait times, and seasonality (slower sales in winter in most markets) extend the timeline.

Question 3

What are typical selling costs on a flip?

Accepted Answer

Selling costs usually run 7–9% of ARV. That includes agent commissions (typically 5–6%), title and closing (1–2%), and buyer concessions (0–2%). In slower markets, budget toward 10% to absorb negotiating room.

Question 4

Should I use hard money or cash for a flip?

Accepted Answer

Hard money lets you scale, you can run multiple flips with the same cash stack, but adds roughly 2–3% per month in rate + fees to your holding costs. Cash maximizes ROI per deal but caps how many you can run at once. Most experienced flippers use a mix: cash on deeply discounted wholesale deals, hard money on listed or slightly competitive deals.

Question 5

How do I estimate rehab costs accurately?

Accepted Answer

Walk the property with at least one licensed general contractor before you close, and build a line-item scope. For early underwriting, use $25–40 per square foot for cosmetic, $50–75 for moderate, and $100+ for full gut. Always add a 10–15% contingency.

Question 6

What is the 70% rule and how does it relate to this calculator?

Accepted Answer

The 70% rule says your maximum allowable offer is 70% of ARV minus repair costs, a shortcut that builds in both flipper margin and selling costs. This calculator models the full math behind that shortcut. If you just want the quick-rule answer, use the MAO Calculator.

Free Fix and Flip Calculator: Project ROI on Any Flip