Purchase Price Estimator
In Flipping Houses For Dummies, I advise you to flip houses with the goal of achieving a 20% profit. To achieve that goal, you begin with the price you’re fairly certain you can sell the property for after fixing it up and then work backward to determine what you can afford to pay for the property when you purchase it.
This Purchase Price Estimator can do all the calculations for you. Just plug in the numbers, and the Purchase Price Estimator shows you the maximum amount to pay for the property in a hot, steady, or declining market.
Note: 20% profit is the magic number in any market. The Purchase Price Estimator calculates a 20% return in a hot market, a 25% return in a steady market, and a 30% return in a declining market. This is not to say you’re going to get a higher return in a slower market. You’re simply aiming a little higher in an attempt to hit your target of 20%. You’ll notice that even though the Purchase Price Estimate recommends different purchase prices for hot, steady, and declining markets, the number in the Profit box remains the same.
Click here to download Excel spreadsheet version...
Or you can simply use the estimater below. Input your numbers and the results are calculated automatically:
| Estimated Market Value After Repairs | ||
| Closing Costs | ||
| Estimated Repair Expenses | ||
| Estimated Renovation Expenses | ||
| Holding Costs | ||
| Estimated Monthly Gas | ||
| Estimated Monthly Electric | ||
| Estimated Monthly Water/Sewer | ||
| Monthly Property Taxes | ||
| Monthly Insurance | ||
| Number of Months | ||
| Total Holding Costs (Calculated) | ||
| Sales Commission (percent) | ||
| Total Costs (Calculated) | ||
| Maximum Purchase Price | ||
| Hot Market (Calculated) | ||
| Steady Market (Calculated) | ||
| Slow Market (Calculated) | ||
| Rapidly Declining Market | Wait It Out | |
| Total Profit |