How to Calculate – Cash Needed – Closing – Holding – Equity Profit

Cash Needed (All In Closing) – The Total Cash needed to purchase property and rehab.


  Purchase Price
- Flip Mortgage Loan Amount
+ Repairs
+ Closing Cost Amount
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= Cash Needed (all in closing)


Cash Needed (Holding Cost x Mos.) – The Total Cash needed to maintain property during rehab and listing periods.


   Holding Cost Mo.
+ Taxes
+ Insurance
+ Mortgage Payment
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= Cash Needed (Holding Cost X mos.)


Equity Profit (At Closing) – The Profit you make at closing when Purchasing the Property using the ARV. In our case, we also take Repairs under consideration.


  After Repair Value
- Purchase Price (or) Flip Mortgage Loan Amount
- Repairs
- Closing Cost Amount
- Mortgage Points
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= Equity Profit (at closing)