Fix and flip numbers?

Question

Just as rentals have the 1 or 2% rule, are there percentage rules or laws that you would follow while doing flips?

J Scott · Answer

Max Purchase Price = ARV - Rehab - Fixed Costs - Desired ProfitARV is the estimated resale value.

Rehab is the estimated rehab costs.

Fixes costs are:  https://www.biggerpockets.com/...

Desired Profit is how much you want to make on the deal.

Charles Goodwin · Answer

Hey Marco,

The formula I use is simple: (ARV * 75%) - estimated renovation budget = max offer price.

If you can acquire the property for lower than that, you're setup for more profit. Some people stretch above 75%, however I would not recommend it on your first flip.

Fix and flip numbers?

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