Most Flippers Lose Money on the Math, Not the Renovation
The rehab goes fine. The finishes look great. The listing attracts buyers.
But you paid too much. The holding costs ate your margin. The agent commission was higher than you budgeted. And after 6 months of stress, you walked away with $8,000 profit on a $200,000 deal — a 4% return you could have matched in a savings account.
The deal was dead before you bought it. You just didn't run the numbers correctly. PIE's house flip calculator catches bad deals before you commit.
Check any flip deal for profit potential — ARV, rehab costs, holding costs, and ROI in 30 seconds.
Analyze a flip deal free Free preview · No signup · Any US addressWhat the Flip Calculator Shows
The 70% Rule — Your Safety Net
Professional flippers follow the 70% rule: never pay more than 70% of ARV minus repair costs.
| ARV | Repairs | Max Purchase Price | Why |
|---|---|---|---|
| $300,000 | $40,000 | $170,000 | 70% of $300K = $210K − $40K |
| $250,000 | $30,000 | $145,000 | 70% of $250K = $175K − $30K |
| $200,000 | $25,000 | $115,000 | 70% of $200K = $140K − $25K |
The remaining 30% covers holding costs, closing costs, agent commission, and your profit. Break the 70% rule and you're gambling — not investing.
"I was about to offer $195K on a property. PIE's calculator showed ARV at $260K (not the $290K the agent claimed) and rehab at $45K (not $25K). The deal was a break-even at best. Walked away and found a better one three weeks later."
→ Use the rental property calculator if you're buying to hold instead of flip.
→ See how flipping compares to other strategies in our investing strategies comparison.
→ Learn the financial metrics behind flip analysis.