How to Analyze a Fix and Flip: A Step by Step Case Study

In This Article

“I hate math!”

How many times have you muttered that frustration in your life? Even for a math nerd like me, there are times I hate math. However, if you are going to be a successful real estate investor, math is part of the package. This is perhaps most true for those looking to fix and flip a house.

When flipping, simple math errors can result in huge profit losses and discouragement.

It sucks.

However, success is not a mystery. I believe learning how to properly analyze a flip is the first step in a successful and lucrative career in house flipping – and it doesn’t have to be difficult or scary.

In today’s post, I created a video to walk you through the exact steps I use to analyze a fix and flip deal and determine how much potential profit could be made. I am going to be using the new flipping calculator from BiggerPockets, but you could do the same calculations with pen and paper if you needed to.

Take a minute and check out the video below for a step by step walk through of how I analyze this property for a potential fix and flip.

Photo: Byron Barrett

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.