How to Analyze a Fix and Flip
To analyze a fix and flip, estimate ARV, subtract purchase price, rehab, holding costs, financing, and selling costs, then stress-test timeline and repair overruns. The result is a projected scenario, not a guaranteed outcome.
Estimates are based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, tax, or lending advice.
Run the number, then pressure-test the assumptions.
To analyze a fix and flip, estimate ARV, subtract purchase price, rehab, holding costs, financing, and selling costs, then stress-test timeline and repair overruns. The result is a projected scenario, not a guaranteed outcome.
Use this page to understand the metric directionally, then compare it against financing, reserves, repair risk, cash flow, and your own constraints.
Estimated flip result = ARV - purchase price - rehab - holding costs - selling costs
If ARV is $350,000, purchase is $235,000, rehab is $55,000, holding costs are $10,000, and selling costs are $28,000, estimated result is $22,000.
Use the formula inside a full deal model
DealSharp helps compare assumptions, debt service, cash flow, and risk flags so this metric is not reviewed in isolation.
Open DealSharpHow to read this number
The useful move is not treating one number as a final answer. Use it to decide which assumptions deserve more review, then compare the result against cash flow, financing, reserves, repair risk, and your own constraints.
Inputs required
- Metric inputs shown in the formula or calculator.
- Income, expense, debt, value, and cash assumptions where relevant.
- Investor-provided numbers that should be checked against source documents.
Outputs explained
- Scenario estimate based on the inputs.
- Plain-English context for comparing the metric.
- Limitations and assumptions to review before relying on the result.
Assumptions to review
- Inputs are estimates supplied by the user.
- Market rent, lender terms, taxes, insurance, repairs, and legal details can change the result.
- DealSharp does not provide financial, investment, legal, lending, tax, or accounting advice.
What this tells you
- Flip analysis shows whether the margin has room for uncertainty under your inputs.
- It helps test offer price, rehab budget, ARV, and hold period.
- A tighter margin means more sensitivity to mistakes or delays.
What this does not tell you
- It does not confirm ARV, repair bids, permit timing, financing, tax impact, or buyer demand.
- It does not guarantee resale price or project timeline.
Common mistakes
- Using optimistic ARV without comparable sales support.
- Underestimating holding and selling costs.
- Not adding contingency to rehab.
FAQ
What is the biggest risk in flip analysis?
Common risks include ARV misses, rehab overruns, longer holding periods, financing cost changes, and slower resale demand.
Should selling costs be included?
Yes. Agent commissions, closing costs, concessions, and transfer costs can materially affect a flip scenario.
Run the full deal before deciding
This page helps with one metric or workflow. DealSharp is built for full real estate deal analysis: assumptions, financing, cash flow, repair scenarios, DSCR, cap rate, and risk flags based on your inputs.
Open DealSharpDisclaimer
DealSharp provides calculation and scenario-modeling tools for informational purposes only. Outputs are estimates based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, lending, tax, or accounting advice. Verify important decisions with qualified professionals.