House Flipping  Calculator

Closing costs can include broker fees, legal fees, titles fees and other administrative costs. With this house flip calculator, the closing costs are separate to the realtor fee and the loan origination fee. This partially explains why the closing costs are relatively low by default.

Realtor fees, also known as real estate agent commissions, are typically a percentage of the home's purchase price that is split between the buyer's and seller's agents. The average commission is between 5% and 6%, but it can vary depending on the agreement, property type, and market conditions. For example, in Oregon, discount real estate brokers may charge 1.5% to 3%.

The Fix and Flip Property Purchase Price is the amount that you intend to pay for the property. It is very common for real estate investors to use the 70% rule to determine the property purchase price. Here's a quick breakdown of the 70% Rule:

Maximum Purchase Price = After Repair Value * 70% – Repair Costs

Note: Some investors call this the acquisition cost.

The After Repair Value is a realistic estimate of what the property will be worth after the renovations have been completed. It is an essential metric to understand when flipping houses, because it can help you determine the profit potential of the flip.

To gain a good understanding of the ARV, it is best to use comparable properties (comps). These are recently sold properties in the area that have similar features to the investment property. Comps provide hard data on what the market is willing to pay for a well maintained property in the target neighborhood.

The rehab costs can make or break a fix and flip deal. The underlying goal is to complete repairs that will immediately improve the market value of the property. Improving the kitchen, bathrooms and bedrooms will generally improve the resale value of a property, but there are plenty of other profitable rehab costs that you can focus on. The point is, you need to be certain that you will make a solid return on investment with each repair that you complete.

When you apply for a hard money loan, it is customary to make a down payment. While 20% is the minimum down payment for a hard money loan rates for other Non-QM loans we offer at NW Alternative Mortgage can vary. Call our lending team today at 503-343-7999 to find out more about what lending solutions are best for your situation.

Holding costs are all the recurring expenses associated with owning property. They are usually paid monthly and include things such as:

• Financing payments

• Property taxes

• Insurance

• Gas, electric, water

• Trash collection

• HOA or condo fees

Some real estate investors will include marketing expenses into their holding costs if the marketing expenses are paid on a recurring basis. Holding costs do not include expenses related to buying and selling the property, such as lender’s fees, Realtor commissions, closing costs, inspections, surveys, home warranties, and MLS listing fees.