Using listings for ARV
Only closed sales prove value. A listing proves someone's hope.
Rehab / Fix-and-Flip Calculator
Scope, contingency, carrying cost, and whether the spread is real.
Assumptions · Acquisition
Percent of purchase price
Assumptions · Scope of work
Assumptions · Hold and exit
Utilities, insurance and taxes during the project
Commissions, concessions and seller closing costs
Analysis
Projected profit
$4,750
- Rehab budgetHard costs plus contingency
- $77,000
- Carrying and financing
- $26,675
- Total project cost
- $539,300
- Break-even resale
- $579,892
- Maximum responsible offer70% of after-repair value less rehab
- $332,500
- Return on cash
- 2.53%
Your analysis is complete.
These are assumptions, not verified facts about a property.
Add an address to carry these numbers into Property Intelligence™ — the full advisory product, with evidence, documents and next steps.
Ask a questionAbout this calculator
- What it is
- A rehab and fix-and-flip calculator that works backward from after-repair value to the highest price you can pay and still profit.
- Who it is for
- Flippers, BRRRR investors and buyers pricing a property that needs work.
- The problem it solves
- Renovation projects fail on two numbers: an ARV taken from optimism rather than comparable sales, and a budget with no contingency.
The formula
Max offer = ARV × 0.70 − repair costs (the 70% rule)
The 70% margin absorbs holding costs, financing, selling costs and profit. Full accounting is more precise: profit equals ARV less purchase price, rehab, holding costs, financing costs and roughly 6% to 8% in selling costs.
How to use it
01
Establish ARV
Use closed sales of renovated comparable properties within the last six months, adjusted for size and condition.
02
Scope the work
Price each system and finish separately rather than using a per-square-foot average.
03
Add contingency
Add 10% to 20% for what the walls hide.
04
Add carrying and selling costs
Financing, taxes, insurance and utilities during the project, plus commissions and transfer taxes at sale.
05
Solve for the offer
Work backward from ARV to the highest purchase price that leaves your required profit.
When to use it
- Pricing a distressed or dated property.
- Deciding whether a renovation is worth doing at all.
- Setting a walk-away number before negotiating.
Common mistakes
No contingency line
Rot, knob-and-tube wiring and failed drainage are discovered after demolition, not before.
Forgetting holding costs
Six months of payments, taxes, insurance and utilities is real money against the profit line.
Renovating past the neighborhood
Finishes above the block's ceiling rarely return their cost.
Questions people ask
What is the 70% rule in house flipping?
Pay no more than 70% of after-repair value minus repair costs. The 30% margin covers holding costs, financing, selling costs and profit.
How much should I budget for renovation contingency?
10% to 20% of the rehab budget. Older homes and anything involving foundations, plumbing stacks or electrical service belong at the higher end.
How do I estimate ARV?
From closed sales of similar, renovated properties nearby within the last six months, adjusted for square footage, bedroom count, lot and condition.
What Property Intelligence™ adds
Upload the inspection report and Property Intelligence reads it into the brief — what was found, what it likely costs, what is urgent — and states the ARV with the comparable sales it rests on.
The next calculation
Local pages that use this calculator
- Review the Troy rehab analysis process
Is this rehab worth viewing, and what must be verified before estimating the project?
Calculator: Rehab / Fix-and-Flip Calculator