What's a good profit on a flip?

Many investors target a net profit of 10–20% of ARV. On a $300,000 ARV property that's roughly $30,000–$60,000 after all costs — enough to absorb a surprise and still come out ahead.

What number matters most in a flip analysis?

The purchase price, because it's the input you most directly control. Accurate ARV and rehab estimates matter enormously, but disciplined buying — staying at or below the 70% rule — is what protects the whole deal.

Deal Analysis

House Flip Deal Analysis: A Worked Example, Start to Finish

Theory is easy; the numbers are where it gets real. Here's one deal analyzed all the way through.

June 15, 2026 · 7 min read

Quick answer

A complete flip analysis runs in order: estimate ARV from comps, apply the 70% rule to set your maximum offer, build a rehab budget, add closing, financing, holding, and selling costs, then subtract everything from ARV to get net profit and ROI. This worked example walks through each number on a $300,000 ARV property.

Step 1 — Estimate ARV

Comparable renovated homes nearby sold recently for $290,000–$310,000. We set a conservative ARV of $300,000.

Step 2 — Apply the 70% rule

Estimated rehab is $45,000. Maximum offer = ($300,000 × 0.70) − $45,000 = $210,000 − $45,000 = $165,000. We negotiate and buy at $160,000.

Step 3 — Build the full cost stack

Line item	Amount
ARV (projected sale)	$300,000
Purchase price	$160,000
Renovation	$45,000
Closing costs (buy)	$5,000
Financing (points + interest)	$14,000
Holding costs (6 mo)	$12,000
Selling costs (~7%)	$21,000
Total invested	$257,000

Step 4 — Net profit and ROI

Net profit = $300,000 ARV − $257,000 total invested = $43,000. Against roughly $90,000 of actual cash in the deal (down payment, points, closing, holding, and rehab not covered by the loan), that's a strong cash-on-cash return for a 6-month project.

Change one input and watch it move: buy at $180,000 instead of $160,000 and net profit drops to ~$23,000. The purchase price is the lever you control most — protect it.

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Frequently asked questions

How do you analyze a house flip deal?: Estimate ARV from comps, apply the 70% rule for your maximum offer, build a rehab budget, add closing, financing, holding, and selling costs, then subtract total costs from ARV for net profit. Stress-test by varying the purchase price and rehab.
What's a good profit on a flip?: Many investors target a net profit of 10–20% of ARV. On a $300,000 ARV property that's roughly $30,000–$60,000 after all costs — enough to absorb a surprise and still come out ahead.
What number matters most in a flip analysis?: The purchase price, because it's the input you most directly control. Accurate ARV and rehab estimates matter enormously, but disciplined buying — staying at or below the 70% rule — is what protects the whole deal.