Fix and flip
Fix and flip
Projected profit and return on cost for a short-hold project.
Include financing and carry costs. Projects rarely fail on the rehab budget; they fail on how long the money is out.
$350,000
$100,000
$600,000
$4,000
8
Projected profit
$118,000
- After-repair value
- $600,000
- Total carry
- $32,000
- Total project cost
- $482,000
- Return on cost
- 24.5%
If the margin is thin before closing costs and selling costs, it's thinner than it looks.