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How much do house flippers make? Run the real math
Flip profit is the sale price minus everything you spent. Here is how to calculate it, with a worked Houston example.
Get my termsHouston hard money lenderTypical house flipping profit
House flippers make the sale price minus the purchase price, rehab, financing costs, holding costs and selling costs. Many investors aim for a profit of 10% to 20% of the sale price on each flip. The single biggest driver is buying well below the after-repair value; the 70% rule is the common guide.
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Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
Worked example
| Houston flip | Amount |
|---|---|
| Sale price (ARV) | $360,000 |
| Purchase price | -$180,000 |
| Rehab | -$60,000 |
| Loan points and fees (example) | -$6,000 |
| Interest for 6 months (example) | -$14,000 |
| Taxes, insurance, utilities | -$6,000 |
| Selling costs (about 7%) | -$25,200 |
| Profit | $68,800 |
Financing figures are examples only, to show the math.
What eats flip profit
- Paying too much for the house
- Rehab overruns
- Slow rehab, which adds interest and holding costs
- Pricing above recent sales
Keeping more of the profit
With 100% of purchase and rehab funded, your own cash is not tied up, so you can run more flips at once. See 100% fix and flip financing.
Questions investors ask
Straight answers about how much do house flippers make.
How much do house flippers make per flip?
It varies by deal. Many aim for 10% to 20% of the sale price after all costs.
What is the 70% rule?
Purchase plus rehab should be no more than 70% of the after-repair value.
Do financing costs matter much?
Yes. Points and interest come out of profit, so faster rehabs keep more money in your pocket.
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