Flipping Houses: The 6 Most Important Calculations When Assessing a Fix & Flip

Dusty Rhodes • August 17, 2020

TV stars make the flipping process look easy. Sure, they may have to replace an entire HVAC system last-minute, but they always walk away with happy buyers and tens of thousands of dollars in their pockets.



Is that really how flipping goes?



Not all investors agree that flipping is the best process for investing in a house. Others prefer the buy and hold model or the BRRRR strategy. The “right” choice will depend on the home’s value, how much you can afford in holding costs, and what repairs are necessary to flip the property.



No investor should flip a house without looking closely at the associated costs. The estimated total will always seem lower if you forget to factor in the little expenses that slowly eat away at your profit. Don’t leave any costs up to chance.



The six most important calculations you will need when assessing a flip include:



  1. Current cost of the home
  2. ARV (after repair value)
  3. Projected repair costs
  4. Closing costs
  5. Financing costs
  6. Other monthly expenses



How Much Does It Cost to Flip a House?



Dive deep into the aforementioned six areas to calculate as accurate an estimate as possible. That way, you can invest confidently in properties where the numbers make sense.

Surprise repairs or sitting on the market could mean the difference between a good investment and a bad one. Prepare yourself appropriately to walk away from your flip with a stuffed wallet.



1. Current Cost of the Home



This is obvious. How much are you going to have to pay up front in order to get this flip started? Know that this cost will also have an impact on other calculations, like closing costs and financing costs.



2. ARV (After Repair Value)



The ARV will determine whether or not all of your repairs are worth the time and money. Investors calculate a home’s after repair value to estimate what they will walk away with when they finally sell the flip to the new homeowner.



Estimating a home’s ARV may require some research and planning. What repairs will add value to the home? Where is the home located? How will it compete with similar homes in the market?



Take a look around the neighborhood and consider similar properties when assessing your home’s ARV. This analysis can also be a good predictor of how long a house might stay on the market. It suggests the direction that home prices are moving, too.



3. Projected Repair Costs



You won’t reach your target ARV until you make the right repairs on your flip. But how much are these repairs going to cost?



There is no one answer. Every house has different needs based on its square footage, when it was built, and how it was maintained by previous owners. Flippers could have to replace an entire HVAC system just to get the building up to code, or the house may just need some fresh flooring and paint.

The more thoroughly you assess these costs, the fewer surprises you will face when it’s time to flip. (It’s not an episode of an HGTV show unless it has one big surprise repair to keep viewers hooked.)



BiggerPockets has a Rehab Estimator Calculator to help fix and flippers assess necessary repairs. Before you buy, consider which repairs must be done:

 

  • Roof and gutter maintenance/replacement
  • Exterior carpentry (siding, windows, doors, deck, and/or porch)
  • Landscaping
  • Septic repairs
  • Electrical, plumbing, HVAC maintenance or replacement
  • Flooring and drywall replacement/cleaning
  • Appliance replacement

 

These are just some of the repairs you may face when flipping a home. Bring a comprehensive checklist when walking through a home to thoroughly assess the work that needs to be done and how much these repairs could cost.



4. Closing Costs



Flippers will need to buy and sell their property, going through the closing process twice. Buyers typically don't have to factor in a high number for closing costs, but negotiations could always change the game. Sellers often foot the bill for agent fees, concessions, or title fees. These costs could reach up to 10 percent of the sales prices, so don't forget to factor them in when assessing the flip.



5. Financing Costs



Unless you have cash to play with, you're going to need to get a loan for your flip. The more you sit on the flip, the more interest your loan will accrue. Consider the costs of getting the loan—and paying it back.

6. Other Monthly Expenses



Even if you don’t anticipate owning the home for more than a few months, you’ll still have expenses to pay as a homeowner.



Here are a few:

  • Utilities
  • Property taxes
  • Insurance
  • HOA fees
  • Landscaping maintenance



Keep these costs in mind as motivation to sell quickly. The longer you sit on a flip, the more you will have to pay in electric bills and property taxes.



Don’t Just Rely on One Calculator



There are plenty of online tools to estimate a flip’s potential profitability. In fact, BiggerPockets has seven different calculators for assessing a flip, including a Fix and Flip Calculator and Rehab Estimator Calculator.



A single calculator is unlikely to provide a definite answer on whether your flip is a good investment or not. Consider multiple scenarios and look to different resources before making a decision.



The difference between a good or bad flip could be one simple oversight. Consult with real estate investment experts about anything you'd like clarified or double-checked.







Source:   BiggerPockets



Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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Top Mistakes Homeowners Are Making in 2026 (And How To Avoid Them)

By Dusty Rhodes • March 23, 2026
Let’s be clear: selling your house is absolutely possible right now. According to the National Association of Realtors (NAR), roughly 11k homes sell every day in this country. And the sellers who are making their moves happen all have one thing in common: they’ve adjusted their strategy to match today’s market. They’re realizing inventory has grown. Homebuyers are more selective. And buyer expectations are higher. The sellers who struggle are usually approaching today’s market with yesterday’s expectations. Here are the three biggest mistakes they’re making – and how to avoid them. 1. Pricing Based on What Their Neighbor Got a Few Years Back Setting your price is the most important decision you make when you sell – and the one that’s most often mishandled. Realtor.com data shows almost 1 out of 5 sellers in 2025 had to drop their price. Here’s what those sellers went wrong. Buyers have more choice and more negotiating power now that inventory has grown. And house hunters will actively avoid your house is if feels like it’s priced too high. That’s why overpricing usually leads to: Fewer showings Less competitive (or lowball) offers Longer time on market And all three of those side effects are things you don’t want to deal with. What To Do Instead: The good news is the cure is simple. Just price for today’s buyer, not yesterday’s headlines. Lean on your agent’s knowledge of recent comparable sales, current competition, and local buyer behavior to land in the value “sweet spot” that drives traffic and urgency from day one. 2. Trying To Skip Repairs That Buyers Now Expect A few years ago, you could sell as-is and still get well above asking. Today? Not so much. Right now, NAR says two-thirds of sellers are making at least some repairs. And the reason why is simple. In a market with more inventory, buyers compare homes side by side. Homes that don’t show well (or feel dated) are going to lose attention quickly, even if the issues are minor. What To Do Instead: Ask your agent which high-impact, low-stress updates they’d recommend for your house. The goal isn’t perfection. It’s helping buyers see themselves moving in without a mental to-do list. Small investments in staging, repairs, and curb appeal can make a huge difference in how quickly offers come in – and how strong those offers are. 3. Playing Hardball When Buyers Try To Negotiate Today’s buyers have housing affordability at the top of their minds. And since money is already tight, they’ll be pickier and will probably ask for some compromises from you. Whether that’s making repairs, giving them a credit at closing, or taking just a few thousand dollars off your asking price, negotiating is normal again. So, if something pops up in the inspection, you’re going to need to be open to talking about it. If you’re not, you may very well see your buyer walk away. And some sellers are figuring this out the hard way. Redfin data shows one of the big reasons home sales fell thru in 2025 was inspection or repair issues. Odds are those homeowners weren’t willing to flex a bit to get the deal done. What to Do Instead: Meet with your agent to make sure you understand what buyers in your area care the most about. Align your price with value, present the home clearly and confidently, and stay open to reasonable negotiations that keep deals moving forward.

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By Dusty Rhodes • March 16, 2026
They’re often called aging-in-place features, but things like curbless showers, nonslip flooring and wide walkways and doorways can benefit everyone, no matter their age or ability. “Regardless of aging in place, there is a place for these in day-to-day life, whether it be a teenager on crutches, a family member having had surgery, active kids,” designer Dana Bass says. “It’s not just about aging in place. We’ve got to account for unplanned life emergencies.” Designer Tammy Battistessa of Ellaire Kitchen & Bath Design agrees. “Whenever possible, I include aging-in-place and universal design features in every project, as I believe many of these features benefit clients of all ages and abilities, in addition to allowing a client to safely remain in their home for a longer period of time,” she says. Creating a home that can adapt also makes it more sustainable. “Aging in place is a key element to making legacy homes that can evolve over time,” architect Tim Barber says. With all that in mind, we asked more than 50 home design and construction professionals to share the aging-in-place features they always recommend. Here are the 10 that came up again and again. 1. Wide Walkways and Doorways Planning ahead is one of the most important steps when incorporating aging-in-place features. Many of these elements require thoughtful design and construction, so it’s wise to start early — and to consider hiring professionals who understand the nuances. “Thinking through how you will really use the space makes all the difference,” designer Haiku Durden of HDS Design says. “Having a designer involved really makes a difference.” A professional can help you create a plan that works for your current needs and anticipates future ones. “We currently default to aging-in-place features when our clients are near retirement or retirement age,” says designer Jenny Guggenheim of Guggenheim Architecture and Design Studio . “Preplanning by adding blocking behind the wall finish, spacious floor planning to allow for wheelchair or walker use.” In fact, spacious layouts are among the most commonly recommended aging-in-place strategies. Wide walkways and doorways — and generous clearances around furniture and fixtures — make it easier for anyone to move through the home comfortably. Installing a continuous flooring material throughout also reduces tripping hazards caused by changes in height or texture between rooms.

The Price You Set Can Make (or Break) Your Sale

By Dusty Rhodes • March 2, 2026
There’s one decision you’re going to make when you sell that determines whether your house sells quickly, or it sits. Whether buyers make an offer, or scroll past it. Whether you walk away with the maximum return, or you end up cutting the price later. And that’s your asking price . The #1 Mistake Sellers Make Today: Trusting the Wrong Number If you’re thinking of moving and trying to figure out what your house may sell for, it’s tempting to start with an online home value tool. They’re fast, free, and easy. And you don’t have to talk to anyone. But here’s the problem: they don’t know your house. And that can be a bigger drawback than you realize. Where Online Estimates Fall Short Online tools often lag behind the market. They look in the rearview mirror, relying on closed sales and delayed information. And in that sense, they’re using incomplete data . That’s not a miss in how these systems are built. Some information just isn’t available online. Bankrate explains: “ While these tools can be a useful starting point, keep in mind that they typically do not provide the most accurate pricing. Algorithms can only rely on the information available; they can’t account for things like a home’s condition or renovations made since the last public information was updated.” They can’t see: The unique features that make your house special All the work you’ve put in to keep it in good condition Or, how in-demand your specific neighborhood is right now So, while they may do a good job in some cases, they can’t be as accurate as a local agent who has boots on the ground day in and day out. In a market where buyers have more options, a seemingly small margin of error can cost you thousands if you price too low, or weeks of lost momentum and time if you price too high. If you want to sell for the most money and in the least amount of time, you don’t want the fast answer on how to price your house. You want the right one. That’s why the savviest homeowners today don’t rely on algorithms when it actually matters. They rely on people, specifically trusted local agents. What an Expert Agent Brings to the Table According to 1000WATT , sellers overwhelmingly believe real estate agents have the best sense of a home’s true value, far more than any automated tools.