All the house flipping tips in the world won’t save your flip if you don’t take the time to do the math before you make your investment. Being diligent about the numbers upfront can save you a great deal of time and energy, as well as a great deal of money.
But where to get started? If you’re new to house flipping, the necessary math might feel a bit overwhelming. Fortunately, the ZINC Financial Deal Analyzer can help.
You can find our free Deal Analyzer tool here or from the homepage of our website. It’s the first link under the “Quick Links” section on the upper righthand side. Be sure to bookmark the Deal Analyzer for easy access in the future.
Using the Deal Analyzer is as simple as plugging in numbers and pressing “Calculate.” The analyzer will ask for some key financial information, including:
- The purchase price
- The estimated total rehab costs
- The expected after repair value (ARV)
- The estimated time it will take to flip the property in months
- The size of the home flipping loans you’ll be needing
- The interest rate on the loan
- The loan points
- The estimated property tax
- And a few estimated fees
The more accurate you can be with these numbers, the more useful the Deal Analyzer will be. You may want to start by trying different number combinations to hone in on an appropriate investment range. But as you get closer to actually investing in a property, you will want to be precise with your numbers.
Once you plug all of your numbers in, the Deal Analyzer will generate a report for you including all of your inputted information and some key calculations about the proposed flip. You will get an estimate of the total holding costs, the selling costs, the total amount of cash needed to complete the project, and the estimated net profit. To keep everything simple and organized, you can print your results or save them as a PDF to look at later.
If you need help using the Deal Analyzer or if you’re ready to take next steps, give us a call at (559) 326-2509.