Fix & Flip Deal Analysis

[Cyle Harris]

I developed a simple excel spreadsheet years ago to analyze potential deals and decided recently to revamp calculations after nearly purchasing a bad deal. My old spreadsheet encompassed all of the basics and helped me purchase my first deal but it definitely needed some improvements.

 I've been using "The Book on Flipping Houses" by Dan Scott as a template to add the underlining expected costs behind estimated rehab/fixed costs, comp adjustments (i.e. beyond just bed and baths), and I always calculate some sort of contingency as we all know rehabbing houses is typically more expensive than originally expected. I've finalized the fixed costs and comp adjustment portion and still have the rehab portion to go. My goal is to have this tool setup to account for all potential costs that will go in to making a deal viable while making it simple enough to complete in 5-10mins. 

What is your deal analysis process? Do you use a pre-built tool or did you create something yourself? 

[Scott E.]

I started with J Scott's spreadsheet probably 10 years ago now as well, but have since evolved my spreadsheet to be more tailored to the deals that I'm doing and account for all expenses that I generally see with my business model.

It's super helpful and important to have a deal analysis tool pre-built to analyze deals. You can know within 30 seconds whether a deal makes sense or not at the asking price, or what price you need to buy to make the numbers work.