flipping house numbers and return metrics

[Alan Hale]

We just finished a flip in Waco and sold it. Now that I'm going over the numbers on our flip, I have a ROI formula question:ROI = (ending value - starting value) / (starting value).

We went into our flip with 45k starting value. Now that we're done and closed, we have a larger amount left over. Is that the ending value since we aren't holding on to the property?Or is ending value after you've taken out other costs: We still have a small loan to pay. But I want to set money back for ST cap gains tax, pay back our personal finances for expenses covered out of that, etc.

I guess the short question is: What all costs get taken out to determine if you have a profit or left money in the deal? Of the 45k we took out of our accounts for capital, only 22.9k is going back in.

[Chris Seveney]

@Alan Hale

What you borrow is irrelevant

You paid X

You spent Y

Sold it for Z

Z-(x+y) = gross profit

If you took out $45k and only have $23k now looks like you lost $20k+