CalculateRealEstateROI

House Flipping

What margin should I target on a flip?

Minimum 12–15% of ARV net, ideally 18–22% to absorb surprises.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Minimum 12–15% of ARV net, ideally 18–22% to absorb surprises.

Expanded explanation

Below 12% margin, one inspection or holding-cost surprise erases profit. Buy at price that protects against rehab/comp errors.

Examples

  • $300k ARV × 18% = $54k target net profit.

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