Have a better fix/flip formula?

[Delatour Zimmer]

Does anyone have a proven formula for figuring net profit from a flip? I have been quoted 68% of ARV, minus rehab costs, for max purchase, but net profit seems over inflated and does not seem to include enough holding costs,escrow, taxes, insurance, Real Estate costs etc. Any feedback or better formula? I need to be able to figure quickly if a property is worth pursuing in more detail.

Thanks so much!

new investor

Dela.  

[Eddie Egelston]

Formula is too strong of a word. It's addition and subtraction.

Create a spreadsheet or find one that allows you to enter actual line items, not one that guessimates closing costs to be "10%" of ARV.

The HouseFlippingSpreadsheet.com has the best one by far IMO.