[Calc Review] Help analyzing an SFR Fix and Flip / Rehab

[Christopher Albritton]

Hello BP Members, and thank you in advance.

Question:

Is the ROI section on the Flip Calc broken?

The analysis below via the link has the following numbers:

Purchase Costs: $109,500

Rehab Costs: $54,000

Holding Costs: $5,800

Sales Costs: Selling + RE Agent Fees = $10,700

Total Costs = $180,000

ROI = Value of Investment - Cost of Investment / Cost of Investment

In short, A-B/B = ROI

205 - 180 / 180 = 13.9%

However, the calc output says 14.77%. Why? Am I mathing wrong, or is there truly a mistake?

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Additionally, I have a couple layout suggestions, and just cuious if anyone else feels the same way.

• "Financial Breakdown"
  • Again, using numbers from my analysis , all costs = 180k, and my ARV is 205k. This means I make a 25k profit. However, in the "Sales Costs" section lists ARV, over All Selling Closing Costs, over RE Agent Fees, then totals them up like this 205 - (2.5 + 8.2) = 194.3
  • Why is this $194,300 even relevant? If my true total cost is $180,000 then why is this number even included in the output? Instead, it seems the layout should be asfollows:
    • Purchase Costs
    • Rehab Costs
    • Holding Costs
    • Sales Costs
    • Final Total & Profit
      • ARV - Total Costs = Profit

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• "Estimated Repairs"
  • Overall, more customization to the user about which lines to display or not would be welcome. Even being able to include sub lines for each line if necessary would be great. For example, Decks (Front Deck, Back Deck) Landscaping (Sod, Tree Removal, Lawn Maintenance).
  • Interior Repairs should have the option to display costs per room/area (BR 1, BR 2, Bath 1, Bath 2, Kitchen), as well as a line item such as "Appliances".

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Again guys, thank you for the review, and I look forward to learning from you!

[David Robertson]

Your Total Investment is your Purchase Costs + Rehab Costs + Holding Costs.

$109,500 + $54,000 + $5,800 = $169,300

$25,000  $169,300 = 14.77%

The Total Investment calculation doesn't include Selling Costs because Selling Costs are not a cost that you 'pay out of pocket'...Selling Costs are typically paid/deducted out of the proceeds of the sale when you go to sell the property.