Calcolatore Profitto Flipping — Formula

House Flip Profit Analysis

Flipping a property involves buying below market value, renovating, and selling for a profit. Accurate cost accounting is critical because hidden costs erode margins quickly.

Formula

Net Profit = Sale Price - Purchase Price - Rehab Cost - Holding Costs - Selling Costs

Cost Components

  • Rehab: Materials, labor, permits, contingency (add 10-15% buffer)
  • Holding: Mortgage payments, property taxes, insurance, utilities during renovation
  • Selling: Agent commissions (5-6%), closing costs (2-3%), transfer taxes

    • Profit Targets

  • Most successful flippers target 15-20% return on total investment
  • Profit per month of hold time matters because time is capital tied up
  • A $20,000 profit in 3 months is better than $40,000 in 12 months on a per-month basis

    • Esempio Risolto

    Buy at $180,000, rehab for $40,000, hold 5 months at $1,500/month, sell at $310,000 with 5% commission and 3% closing costs.

    1. Holding costs: 5 x $1,500 = $7,500
    2. Commission: $310,000 x 5% = $15,500
    3. Closing costs: $310,000 x 3% = $9,300
    4. Total project cost: $180,000 + $40,000 + $7,500 + $15,500 + $9,300 = $252,300
    5. Net profit: $310,000 - $252,300 = $57,700
    6. ROI: $57,700 / $252,300 = 22.9%
    7. Profit per month: $57,700 / 5 = $11,540