How it works
Every number you enter feeds four scenarios: rent or flip, each financed or all-cash. The calculator normalizes those scenarios into comparable returns, then shows the best option against a passive-investing benchmark.
How the verdict is decided
Each scenario gets an annualized return so short flips and long holds are comparable. Rentals use total wealth built from cash flow, loan paydown, and appreciation over your hold horizon. Flips convert the one-time profit into a yearly rate based on how fast your cash comes back. The best scenario is compared to a 7% benchmark.
STRONG BUY
Best annualized return beats the benchmark by 3+ points. Clear edge over passive investing.
MAKES SENSE
Beats the benchmark, but not by much. Worth it if you value the asset or the learning.
CONSIDER PASSING
Trails the benchmark. The stock market may pay more for less landlord or rehab work.
PASS
No scenario turns a profit. Renegotiate price, cut rehab scope, or walk away.
Property
Purchase price
What you pay for the property before work.
Impact: Sets loan size, taxes, and return denominator.
Rehab budget
Renovation cost to get it rent-ready or sale-ready.
Impact: Comes out of pocket in every scenario.
After-repair value
Expected value after renovation, based on comparable renovated sales.
Impact: Drives flip revenue and rental starting value.
Insurance and HOA
Recurring annual insurance and monthly association fees.
Impact: Reduce rental NOI and add to flip carrying costs.
Financing
Down payment
Cash in versus borrowed funds. 100% means all-cash.
Impact: More leverage can lift cash-on-cash return but pressure cash flow.
Interest rate and term
Cost and length of the mortgage. Fixed and ARM loans are modeled separately.
Impact: Determines debt service and flip interest carry.
Closing costs
Purchase costs such as title, legal, lender, and recording fees.
Impact: Adds directly to cash needed.
Property tax
Annual tax as a percentage of purchase price.
Impact: Often the largest recurring rental expense.
If you rent it
Monthly rent
Market rent for the renovated property.
Impact: The rental top line and one of the most sensitive inputs.
Vacancy
Share of the year the unit sits empty.
Impact: Directly reduces collected rent.
Management
Property-manager fee on collected rent.
Impact: Cuts NOI; self-management trades money for time.
Maintenance, CapEx, growth
Repairs, reserves, rent growth, and appreciation assumptions.
Impact: Small annual changes compound heavily over long holds.
If you flip it
Months to flip
Total time from closing to resale.
Impact: Drives holding costs and annualized return.
Utilities
Monthly electric, gas, water, and similar costs while vacant.
Impact: Adds to monthly carrying cost.
Selling costs
Agent commission and seller closing costs.
Impact: Comes off ARV at sale.
Transfer tax
State seller tax at closing.
Impact: A direct deduction from flip profit.
Reference
Assumptions
See the modeling assumptions behind rental projections, flips, financing, taxes, saved deals, and verdict thresholds.
Reference
Formulas
Review the exact formulas used for mortgage payments, NOI, cash flow, annualized returns, flip profit, and the 70% rule.