House Flipping Calculator for ROI, Profit, Cash Flow Estimates

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Interested in house flipping a foreclosure? Then search listings below.

Make sure to use the house flipping calculator above to estimate your expenses and your return on investment (ROI). Make sure to review this with your financial advisor, accountant, or real estate agent. Happy hunting!

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Guide to the House Flipping Calculator

1. Acquisition Costs

• Purchase Price: The total cost of acquiring the property.
• Legal and Regulatory Fees: The costs associated with the legal transfer of the property, including your attorney fees, mortgage discharge, setup or transfer, utility and property tax ownership transfer, government fees and taxes, liens, title insurance, and more.
• Land Transfer Government Tax / Fee: A tax the government imposes on transferring property ownership into your name. Usually, this applies to the buyer when a property is purchased.
• Home Inspection and Appraisal: If you’re obtaining a mortgage to purchase the foreclosure, the lender may require an appraisal to determine the property’s value. Appraisal fees can vary but typically range from a few hundred to a thousand dollars. This inspection typically costs several hundred dollars but can save you from unexpected repair costs.
• Utility Reconnection Fees: If the property has been vacant for a while, you may need to cover the cost of reconnecting utilities and performing basic maintenance to make it habitable. These costs can vary widely depending on the condition of the property.
• Possession / Junk Removal Costs: Expenses associated with cleaning out and disposing of any abandoned belongings, debris, or trash left behind in a foreclosed property. This may include renting a junk bin, hiring a 3rd party, or incurring disposal fees at the junkyard.
• Tenant Eviction Costs: When tenants occupy a foreclosed property, expenses may arise in legally removing them. These expenses include fees for legal proceedings, which may require hiring an attorney, court costs, filing fees, court appearances, and other legal process costs that can add up during the eviction process. In some jurisdictions, landlords must provide tenants with financial assistance or relocation benefits as part of the eviction process.
• Unpaid Taxes and Liens: If you come across any unpaid taxes and liens in your legal review, you must factor these costs into your cost base.
• Other Fees and Expenses: Use this to capture any upfront fees not covered in the above acquisition expenses.

2. Financing and Loan Details

• % Down Payment: The percentage of the purchase price you pay upfront.
• Loan Insurance: Generally, if your down payment is less than 20% of the property’s value, you may need to pay for mortgage insurance. This gets added to your mortgage amount.
• Loan Setup Fee: The fees the lender charges to get your loan setup. These fees are usually added into your loan amount.
• Interest Rate: The annual interest rate on your mortgage. Conventional mortgages will have the option of a fixed or variable rate that adjusts if the government moves their rate up or down.
• Amortization Term: The number of years you will amortize the mortgage. The longer the amortization period, the lower the monthly payment. However, extended amortization periods will also result in more interest paid.
• Expected Loan Duration in Months: Given this investment is meant for a flip, you can pick between 1 and 12 months to fip the unit.
• Down Payment: The actual amount you pay upfront.
• Loan Amount: The total amount borrowed from a lender once you deduct your down payment and add your mortgage insurance.
• Monthly Loan Payment: You’ll pay monthly to service the loan, including principal and interest.

3. Renovations

• Interior Renovations: The amount you expect to spend on renovating the interior of the house. This includes kitchens, bathrooms, flooring, walls, and basements.
• Exterior Renovations: The estimated spend on exterior including bricks and masonry, siding, roofing, and windows, and doors. Any
• Major Appliance Replacement: Any spend to appliances such as fridges, stoves, dishwashers, washers and dryers, cooktops.
• Landscaping: Any expenses that apply soft and hard landscaping such as walkways, backyard work, grass, flowers, trees, patio stones, pavers, asphalt, concrete, and driveway work.
• Engineering Design and Permit Approvals: If you are undertaking major structural changes such as removing load bearing walls, extending the home footprint, or floors, then you will likely need engineering and city approvals.

4. Recurring Holding Costs:

• Monthly Loan Payment: This was calculated and described earlier in the financing section. It is shown here as it becomes a recurring cost as long as you hold the propety.
• Property Taxes: Property taxes are ongoing expenses that vary widely depending on the property’s location, government regulations, and the assessed value.
• Maintenance or Homeowners Association (HOA) fee: If you live in a unit that provides maintenance and management services for a group of units, you will have to pay these monthly fees as long as you own the property.
• Water: If you require water during the renovation, whether for construction reasons or the workers and washroom facilities, then add an estimate for this amount.
• Electricity: If you are in a hot climate and are performing renovations, you may want to have the AC running to keep the place cool. Conversely, if it is hot, electric heating (think baseboard), will also add electricity costs. Of course, for renovations, you will need power for the tools.
• Gas: If the home is outfitted with a gas furnace, then you will use natural gas to keep the place warm during the flipping period.
• Insurance: You’ll need insurance to cover the property during renovations. Ensure you have adequate coverage without overpaying for unnecessary features.
• Other Property Expenses: Use this placeholder to capture any expenses not addressed above.

5. Selling Costs

• Expected Sales Price: After completing any work on the property, this is the expected market value you expect to realise on the sale.
• Legal and Regulatory Fees: Similar to when purchasing, you will have legal and regulatory fees for selling and transferring the property to another owner.
• Home Inspection and Appraisal: If you did significant renovations, you should have the home inspected or appraised ahead of your listing. Some buyers may appreciate having this provided as part of the listing information.
• Loan Discharge Fee: The discharge fee will vary depending on your selected loan type. If you are buying to flip, you should use an open mortgage or something similar that lets you pay out the balance at any time. The trade-off is that you will have higher interest rates in the short term.
• Realtor Sales Commission or Agent Fees: If you use a real estate agent to help sell the property, you’ll need to budget for their commission, which typically can be negotiated to around 3% to 6% of the sale price.
• Other Fees and Expenses: This line captures any other fees and expenses not referenced in this section.
• Expected Tax Rate on Profits: If you know your expected tax implications, you can enter it to see the difference in your ROI when comparing your profit (pre-tax) vs. your net income (after-tax). Understanding your best options to minimize taxes is impacted by your country, state, region, income, and even how long you hold the property. Estimating this impact is best left to a local professional who can help you understand your tax implications.