Calculating Returns on Flips - Can I Use COC in Initial Analysis?

[Chris Marston]

Hi all,

I am a newbie making an effort to analyze properties on a regular basis to help me learn the ropes before I purchase my first property.

What I would like to know is how should I calculate predicted returns on a house flip during my initial analysis of the property? I know you can use Cash on Cash Return for Buy and Hold (Annual Cash Flow/Total Investment = COC), but can I do the same for a flip but replace Annual Cash Flow with my predicted profit from the flip? And of course this metric would have a large qualifier on it.

Are there other ways to predict expected returns on house flips?

Thanks!