Fix and Flip ROI: $350K ARV, $220K Purchase, $70K Heavy Rehab
A heavy-rehab flip targeting $350,000 with a $220,000 purchase and $70,000 renovation may net approximately $25,000 after all costs.
How to use this tool
- Enter the after-repair value: the expected sale price after renovation.
- Enter the purchase price and renovation budget.
- Estimate holding costs (interest, taxes, insurance, utilities while you own it).
- Estimate selling costs (commissions and closing costs at sale).
- Read the net profit, total cost, and ROI.
Evaluate the profitability of a heavy-rehab fix-and-flip with a $350,000 target sale price, $220,000 purchase, and $70,000 in renovations.
Frequently asked questions
- What is a good ROI on a house flip?
- Many flippers target a net profit of at least 10-20% of the all-in cost, or a fixed minimum profit such as $25,000-$50,000 per deal, to compensate for the time, risk, and capital. The right target depends on your market and capital cost.
- Why include holding and selling costs?
- They are real and large. Holding costs accrue every month you own the property, and selling costs (commissions plus closing) often run 6-10% of the sale price. Leaving them out overstates profit dramatically.
- Is this ROI annualized?
- No. It is the simple return on total cost for the whole project. A 20% return earned in six months is far better than the same 20% over two years, so also track your timeline.