What is a typical hold period?

Most flips close in 4–8 months including renovation and marketing. Permitting delays in some cities can push holds to 12 months — adjust carrying costs accordingly.

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Real Estate

Flip Profit

Profit from resale after rehab

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Parameters

Purchase price ($)

Rehab cost ($)

Sale price ($)

Hold period (mo.)

Carrying costs/mo. ($)

Results

Profit: $51,000
ROI: 15.3%

How it works

Estimates profit and ROI from buying, rehabbing, and reselling a property within a defined hold period.

Who it's for: House flippers, wholesalers, and investors evaluating fix-and-flip deals before making an offer.

Total cost = purchase price + rehab cost + (hold period × monthly carrying costs).

Profit = sale price − total cost; ROI = profit ÷ total cost × 100%.

Carrying costs cover mortgage interest, utilities, insurance, and taxes during the renovation.

How to use

Enter Purchase price — contract price plus closing costs on the buy side if not tracked separately.
Set Rehab cost to the full renovation budget including materials, labor, permits, and contingency.
Enter Sale price as your after-repair value (ARV) based on comparable sales.
Set Hold period in months — time from purchase to closing on the resale.
Enter Carrying costs/mo. for mortgage payments, utilities, insurance, and property taxes during the hold.
Read Profit in dollars and ROI as the percentage return on all cash invested.

Good to know

Subtract realtor commissions (~5–6% of sale price) and capital gains tax from profit for a realistic net.
Add 10–15% contingency to rehab cost — overruns are common in older homes.
Experienced flippers target 15–20% ROI minimum to cover risk and capital tie-up.

FAQ

What is a typical hold period?: Most flips close in 4–8 months including renovation and marketing. Permitting delays in some cities can push holds to 12 months — adjust carrying costs accordingly.