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How much do house flippers make?
Flip profit is what is left after every cost. Here is how to calculate it before you buy, using an Austin example.
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Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
The profit formula
Profit = sale price − purchase price − rehab − buying costs − holding costs − financing costs − selling costs.
Selling costs, mainly agent commissions and title fees, are often the biggest number new flippers forget.
An Austin example
| Item | Amount |
|---|---|
| Sale price | $360,000 |
| Purchase price | −$180,000 |
| Rehab | −$60,000 |
| Buying costs | −$5,000 |
| Holding costs (taxes, insurance, utilities) | −$8,000 |
| Selling costs | −$25,000 |
| Profit before financing | $82,000 |
Subtract your loan's interest and fees for the months you hold the house to get your final profit. With 100% financing, that profit comes with little or none of your own money in the purchase and rehab.
This is an illustrative example, not a typical result.
How to protect your profit
- Buy under the 70% rule
- Add a contingency to your rehab budget
- Keep the timeline short to cut holding costs
- Price the finished house to sell fast
Run your numbers in the hard money loan calculator.
Hard money loans across Greater Austin
We lend on investment houses throughout the Greater Austin area, in Travis, Williamson, Hays, Bastrop and surrounding counties.
Questions investors ask
Straight answers about house flipping profit.
What is a good profit on a flip?
It depends on the deal and the risk, but buying under the 70% rule leaves room for costs and profit.
What costs do new flippers forget?
Selling costs, holding costs and a rehab contingency.
How much of an Austin flip will you fund?
100% of the purchase price and 100% of the rehab budget, as long as the total loan is no more than 70% of the after-repair value.
What is the smallest loan you make?
Loans start at $150,000.
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