Run the numbers before you buy the project.
A low purchase price does not automatically make a good flip. Test the complete basis—construction, financing, holding and sale—then work backward to the most you can pay.
Does this flip leave enough room for profit?
Use closed comparable sales and conservative costs. This is a screening report—not an appraisal, loan approval, construction proposal or investment guarantee.
Property address not entered
2,200 sq. ft. · Resale assumption $615/sq. ft. · 10-month hold
| Expected resale value (ARV) | $1,353,000 |
|---|---|
| Less selling costs | ($81,180) |
| Net sale proceeds | $1,271,820 |
| Purchase price | ($850,000) |
| Purchase / closing costs | ($17,000) |
| Construction with contingency | ($252,000) |
| Financing interest | ($53,125) |
| Other holding costs | ($18,000) |
| Estimated profit | $81,695 |
Downside test: 10% lower resale value, 15% higher project cost and three additional holding months.
Planning assumptions supplied by the user. Verify closed comparable sales, property records, permits, zoning, title, inspections, construction scope, financing and sale costs before making an offer. DG Builders does not guarantee value, cost, timing or profit.
What belongs in a flip analysis?
- Purchase and acquisition: price, escrow, title, inspections, loan points and closing costs.
- Construction: demolition, labor, materials, permits, design, engineering, utilities and contingency.
- Holding: interest, property tax, insurance, utilities, security and maintenance for the full timeline.
- Sale: commissions, seller closing costs, concessions, staging and marketing.
Do not choose ARV from the highest listing
ARV should be supported by recent closed sales near the property, with similar size, lot, condition and location. Active listings show competition—not what a buyer has already paid. Use conservative, base and upside cases, and make the purchase decision from the conservative or well-supported base case.
How DG Builders helps investors
We can review the property condition, define a realistic construction scope, identify major unknowns and prepare a build plan before an investor commits to an unrealistic renovation number.
Found a possible deal?
Send the report, property address and listing link. DG Builders can review the construction side before you move forward.
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