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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Here’s Where To Start if You’re Selling and Buying at the Same Time

By Dusty Rhodes • August 3, 2026
If you’re a homeowner getting ready to move , one question usually comes first: should you buy your next home before you sell, or sell your current house before you start looking? There’s no single right answer. The best call depends on your finances, your local market, and your timeline. And a trusted agent can help you weigh all of it. But in a lot of cases these days, selling first puts you in the stronger spot. The Advantages of Selling First Selling is usually the trickier half of a move today, so getting it done first clears your biggest hurdle. And that’s especially true right now , because there are more homes for sale than there are buyers, which means houses are taking longer to sell than they did a year or two ago. So how does leading with your sale pay off? Let’s start with the money. 1. You Won’t Get Stuck Paying Two Mortgages Buy before you sell, and you could end up carrying two mortgages at once. And especially since houses are staying on the market longer these days, that overlap may drag on for more time than you’d planned. And if unexpected repairs come up, it could get even more expensive. Selling first takes that risk off the table, so you’re not multitasking homeownership. As Ramsey Solutions puts it: “It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.“ 2. You Can Use Your Equity To Fuel Your Move This is always true, but one of the biggest perks of selling first is that you’ll know exactly how much money you’re walking away with. And one of the big figures that matters in that conversation is how much equity you have in your current place. Equity is basically your house’s value minus what you still owe on your mortgage. And it adds up fast. According to Realtor.com , homeowners who’ve been in their home for 5 years have about $180,000 in equity on average. And those who’ve had their home for 6-10 years? They have over $340,000. After you sell, you can use that money to cover your down payment or even buy your next home in cash. And knowing that profit up front helps you plan your next move. 3. Your Offer Will Be Hard To Pass Up When your house is already sold, you don’t have to make your offer contingent on that sale. In a market where buyers are taking their time, that’s exactly what a seller wants to see. Picture it from the seller’s side. If their house has been sitting for a while, they’ll gravitate toward the offer most likely to close without a snag. That can also give you room to ask for a little more, like repairs, since a motivated seller would rather keep things moving than lose you and wait for another offer to come in. Your agent can help you make the most of your upper hand in that scenario. Is There a Catch? Selling first has its tradeoffs too, and it helps to see the pros and cons side by side before you decide. Here’s a quick breakdown based on information from Zillow (see visual below) : 

7 Reasons to Use Real Estate Drone Photography for Your Listing

By Dusty Rhodes • July 26, 2026
Online listing photos often shape a buyer’s first impression of a home. They want to understand the home’s setting, the size of the lot, and what makes the property unique before deciding whether it’s worth a visit. That’s one reason real estate drone photography has become a popular addition to many listings. That said, aerial photography isn’t a must-have for every home. Whether you’re selling a home in Houston, TX or listing a rental in Asheville, NC , knowing when to use this style of professional photography can help highlight the features that matter most to buyers. Here are seven situations where real estate drone photography can make a listing more compelling. Key takeaways: Best for homes where the setting is part of the selling point. Shows lot size, layout, and nearby amenities at a glance. Helps buyers visualize features that aren’t visible from the ground. Less valuable for standard homes on small lots. Should be performed by a licensed drone operator following local regulations. 1. The property sits on a large lot or acreage Large properties are difficult to capture from the ground. Aerial photos show the property’s full footprint and help buyers appreciate how much land they’re getting. Bradley Harkey, owner at LuxRE Photos , says drone photography is especially valuable for homes with room to grow. “Drone photography can really be essential when you are selling a home with a lot of land. A view from above can showcase the potential even when it’s not exactly obvious from the ground.” He says buyers often struggle to picture what an undeveloped yard could become. “Oftentimes an unprepped backyard can just look like a bunch of weeds to a potential buyer, but when seen from above, you can visualize where that pool can go, or that basketball hoop, or that go-kart track you always wanted as a kid. Some homes have so much potential, but it’s hard to see between the weeds.” Whether it’s acreage, an equestrian property , or simply a spacious backyard, aerial images help buyers see the property’s potential. 2. The home has waterfront views or scenic surroundings Some of a home’s best features aren’t visible from the front yard. Waterfront access, mountain views, wooded privacy, and distinctive architecture all benefit from an elevated perspective. Doug Smith, principal and founder of Houzpics LLC , explains, “Aerial photography is especially valuable for waterfront or estates with large, feature-rich lots, multi-story architecture, and homes with scenic surroundings. Aerial images help buyers understand the property’s layout and highlight features that traditional ground-level photos may not fully capture.” Rather than focusing only on the home, aerial photography showcases the entire setting.

Psychology says people who keep going back to the beach aren’t just relaxing, they may be restoring something deeper

By Dusty Rhodes • July 21, 2026
Some people enjoy the beach. Others seem drawn to it. They choose beach vacations over city breaks. They find excuses to visit the coast whenever they can. They feel calmer the moment they hear waves crashing or catch sight of the ocean on the horizon. Friends and family may joke that they're "obsessed" with the beach, but psychology suggests there may be more happening beneath the surface. For many people, a love of the beach is not simply about sunshine, swimming, or beautiful views. Research suggests that coastal environments may provide something the modern brain desperately needs: a chance to recover from constant mental demands. Attention Restoration Theory may explain the attraction to the beach One of the most influential explanations comes from Attention Restoration Theory, developed by environmental psychologists Rachel Kaplan and Stephen Kaplan. The theory suggests that everyday life requires large amounts of what researchers call directed attention. This is the mental effort people use to focus during meetings, answer emails, ignore distractions, make decisions, navigate traffic, and manage responsibilities. Over time, directed attention becomes fatigued. Natural environments appear to affect the brain differently. The Kaplans proposed that nature creates a state known as soft fascination. Instead of demanding concentration, environments such as beaches gently hold attention without effort. As a result, the brain gets an opportunity to recover from mental fatigue . For frequent beachgoers, this may help explain why a few hours by the ocean often feels more restorative than an entire day spent indoors. Research on blue spaces supports the idea Psychologists and public health researchers often use the term blue spaces to describe environments that contain visible water, including oceans, lakes, rivers, and coastlines. Over the past decade, a growing body of research has linked blue-space exposure to improved psychological well-being . A 2020 research, Blue space, health and well-being: A narrative overview and synthesis of potential benefits, led by environmental psychologist Mathew White has found that people who spend more time near coastal environments often report better mental health and higher life satisfaction. The authors propose that water environments may improve mental health through several connected pathways: Increased physical activity (people walk, swim, or move more near water) Psychological restoration (reduced mental fatigue and stress) Social interaction (waterfronts often encourage gathering and recreation) Environmental effects such as improved air quality and aesthetic satisfaction Importantly, the review also highlights that blue spaces share similarities with green spaces (like parks and forests), but water environments may have unique psychological effects due to their sensory characteristics and emotional associations. Why the ocean feels different from other environments Many people report feeling calmer almost immediately when they arrive at the beach. Psychologists believe part of the reason may be the unique combination of sensory experiences. The sound of waves is rhythmic and predictable. The horizon creates a sense of openness. The movement of water captures attention without overwhelming it. Unlike social media feeds, traffic, news alerts, and crowded urban environments, the beach provides relatively low levels of cognitive demand. In simple terms, the ocean gives the brain less work to do. That reduction in mental effort may help explain why people often describe feeling lighter, calmer, or more clear-headed after spending time near the water. Place Attachment Theory says beaches can become part of identity For some people, the connection goes beyond relaxation. Psychologists study a concept known as place attachment, which refers to the emotional bond people develop with specific locations. Certain places become connected to family memories, childhood experiences, important life events, or feelings of belonging. Over time, the beach may become more than a destination. It becomes part of a person's identity. This may explain why some individuals return to the same stretch of coastline year after year, even when countless other travel options are available.