House-Flipping Guide
Review the full strategy and major risks.
Open ResourceSample Fix-and-flip case study
Boston-Area Fix-and-Flip Profit Analysis
A flip appears profitable until financing, holding, and disposition costs reduce the projected margin.
Educational sample—not an actual transaction.All property details, people, figures, and outcomes are hypothetical.
Sample assumptions
Property and Financing
| Purchase price | $360,000 |
|---|---|
| Renovation | $115,000 |
| Expected resale | $620,000 |
| Project duration | Eight months |
Modeled results
Financial Analysis
| Buying costs | $14,000 |
|---|---|
| Holding costs | $25,000 |
| Financing costs | $24,000 |
| Selling costs | $43,400 |
| Total project cost | $581,400 |
| Projected profit | $38,600 |
| Return on cost | 6.64% |
| Profit after 5% sale-price drop | $7,600 |
Risk review
What to Examine
Support resale value with comparable renovated homes.
Use written trade estimates and contingency.
Include brokerage, legal, transfer, staging, and concessions.
A small sale-price change nearly eliminates profit.
Primary lesson
The purchase-to-sale spread is not profit; every acquisition, renovation, financing, holding, and selling cost matters.
Replace every sample assumption with property-specific evidence. Test conservative income, expenses, construction, financing, timing, and exit scenarios before committing funds.
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Open ResourceFix-and-Flip Calculator
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