BP Flip Calculator VS MOA caclulation
Hi everyone,
I have been more focused on rental properties vs. flipping but my wife would like to flip and I have a construction background so it make sense for extra money to put into rentals.
The question I have is when do my calculation I am finding the flip calculator gives me one number and the 70% rule a very different number. I know the 70% rule is a "rule of thumb" but I want to make sure I am not missing anything.
For example:
ARV: 255k
Repairs: 20k
So MOA = 255k x .7 - 20k = MOA of 158,500
However the BP calculator says 195k is the MOA whichlooks like this:
Financial Summary for Flipper
Financial Breakdown
Purchase Costs
| Purchase Price: | ($195,969.00) |
| Purchase Closing Costs: | ($2,500.00) |
| Total | ($198,469.00) |
Rehab Costs
| Total Rehab Costs: | ($20,000.00) |
| Total | ($20,000.00) |
Holding Costs
| Monthly Holding Costs: | ($1,276.00) |
| Total Days Held: | 180 |
| Total | ($7,656.00) |
Sales Costs
| Sales Price After Fix Up (ARV): | $255,000.00 |
| All Selling Closing Costs: | ($2,500.00) |
| Real Estate Agent Fees: | ($6,375.00) |
| Total | $246,125.00 |
| Total Profit for Flip | $20,000.00 |
Flip Hypothetical Profit If Held For...
| 45 Days | 90 Days | 270 Days |
| $25,742.00 | $23,828.00 | $16,172.00 |
What am I missing? Why are they different?
Thank you!