J Scott's minimum profit for a flip

[Duane Alexander]

In J Scott's book he says he wants at minimum 10% ARV in profit for a flip. Is this pre-tax or post-tax? For example, let's say you're paying 40% taxes on all profits due to being in the 24% tax bracket and having to pay the 15.3% self employment tax. for a 200,000 house, would J Scott's profit minimum be 20,000, or would his profit minimum be 12,000 (20k - 40% in taxes).