How to make $10k/mo with a House Flipping
The Goal Seek panel below is pre-filled with your target. Pick which lever to move and we’ll show exactly what needs to change. The full calculator is right below it, adjust anything, watch the numbers update in real time.
Where your money goes
- Purchase price70%$180,000
- Acquisition closing2%$4,100
- Rehab + contingency16%$40,250
- Loan points1%$2,520
- Holding interest2%$6,300
- Holding carry costs1%$2,750
- Selling fees8%$20,750
Profit over the first year
What would it take?
Set a target and pick which levers you’re willing to move. We’ll work out what each one needs to be.
What goes into House Flipping costs
Flipping is project-based, you make money once per project, not monthly. That changes the math compared to every other business on this site. The dial that matters most is holding time. Every extra month you own the property, you're paying interest, taxes, utilities, and insurance. A 4-month flip that becomes a 7-month flip can lose all its margin to carry costs even if everything else stayed the same.
The most-cited heuristic in flipping is the 70% rule: your maximum offer should equal (ARV × 0.70) minus your rehab budget. If a house comps at $275,000 after repair and needs $35,000 of work, the math says don't pay more than $157,500. The calculator's insight text flags when your purchase price is over that ceiling so you know you're leaning on a soft assumption (faster sale, better market, lower interest) to make the deal pencil.
Financing is the other lever, and the one new flippers underweight. Hard-money loans typically run 10–14% annual interest plus 1–3 points, which feels expensive until you compare it to traditional financing that won't approve a property in distressed condition. The calculator models down payment + interest + points so you can see the all-in cost of capital, not just the headline rate. Run the same deal at 10% interest vs. 14% and watch the profit move, that's the cost of shopping around for one extra lender.
Frequently asked
What's a realistic profit per flip for a first-time flipper?
$15k–35k per flip is common in mid-market metros. $50k+ requires either a high-ARV market, an efficient crew, or unusually under-priced acquisition. Anything claiming consistent $100k profits per flip from a beginner is selling you a course, not running real numbers.
Should I use a hard-money lender or a traditional mortgage?
Most flips need hard-money, traditional banks won't lend on distressed properties or close in the timeframe you need. Hard money is expensive (10–14% + points) but it's the cost of access. Once you have 2–3 successful flips and a relationship, some local banks will lend on flips at better rates. The calculator handles either, set the interest rate to your actual quote.
Why is the 70% rule a rule?
It bakes in a margin of safety. 70% of ARV minus rehab leaves roughly 15% for total project costs (closing, financing, holding, selling fees) and 15% for profit. Markets that allow you to pay above 70% are markets where ARV is rising, which is great until it isn't. Stick to the rule in stable or softening markets; you can push it in obvious upmarkets but know what cushion you're giving up.
What rehab contingency should I budget?
First two flips: 25–30%. Surprises will happen, sewer lines, mold, knob-and-tube wiring, plumbing under slabs. Experienced flippers with a regular crew can drop it to 10–15% because their estimator gets better. The calculator defaults to 15% but newer flippers should bump it to 25% until they've seen what a full rehab looks like.