House Flipping Analysis Spreadsheet
Download REI Grove's house flipping analysis spreadsheet to estimate purchase costs, repair costs, carrying costs, selling costs, total profit, cash-on-cash return, and key project ratios.
Key Takeaways
- A house flipping analysis helps investors estimate whether a property can turn a profit after purchase, repairs, carrying costs, and selling costs.
- Key metrics include total project costs, total profit, cash-on-cash return, purchase-to-sell ratio, improvements-to-buy ratio, and profit-to-sales-price spread.
- REI Grove's spreadsheet is organized around purchase costs, repair costs, selling costs, and final project assessment.
- By using this spreadsheet, house flippers can compare projected costs against expected resale value before committing to a deal.
Analyzing Your House Flipping Project
House flipping has become a popular way to profit from real estate. If you're a handy house flipper with a good eye for properties and a reasonable repair budget, this real estate investing strategy may work for you.
However, making a profit on flipping houses can get tricky, especially with rising median home prices that will cut into your potential ROI. You need to consider many different factors before purchasing your flipped property to have a better chance of profiting.
House Flipping Analysis Spreadsheet at a Glance
| Spreadsheet Section | What It Tracks | Why It Matters |
|---|---|---|
| Section 1: Purchase Costs | Purchase price, LTV, interest rate, loan type, taxes, insurance, HOA, closing costs, loan amount, down payment, and acquisition cost. | Shows how much it costs to acquire the property. |
| Section 2: Repair & Carrying Costs | Construction timeline, contingency reserve, interior repairs, exterior repairs, mortgage carry, and escrow carry. | Shows what the flip may cost before resale. |
| Section 3: Selling Costs | Sales price, agent commission, concessions, closing fees, and transfer taxes. | Shows how much may be lost during the sale process. |
| Section 4: Final Assessment | Profit, cash-on-cash return, purchase-sell ratio, improvements-to-buy ratio, and profit-to-sales-price spread. | Shows whether the projected flip looks financially viable. |
Evaluate the Market
The purpose of analyzing a potential house flip is to determine whether the home, once flipped, is likely to turn a profit. There are a few different ways to approach the analysis process, but inevitably you will need to determine the after-repair value (ARV) of the property. The ARV represents how much your home is expected to be worth after your rehabs and renovations are complete.
To accurately find your ARV, you will need to find comparable properties, or comps, that have been sold within the last several months. You should be able to glean crucial information from these properties—are home sales going up or down in this area? If home sale prices are going down, you should look elsewhere, wait until the market starts to look up again, or set a definitive maximum purchase price for your flip.
Another factor real estate investors should look for when doing market research is the average days on market, or DOM. If the DOM is decreasing, properties are selling faster and demand is higher. When flipping a home, you want to resell the property as quickly as possible to avoid carrying costs that will decrease your desired profit.
Start by looking for neighborhoods in your area that see the quickest sales. If you can find an inexpensive home in an expensive neighborhood, your chances of turning a strong profit are better.
Assess Potential Properties
When analyzing potential properties for your flip, you'll need important details of the property: the year it was built, how many beds/baths it has, and other aspects of the home that may have an impact on your flipping timeline, like any large-scale repair projects or expensive fixes you know must occur.
Remember that older homes tend to cost more to repair due to the likelihood of major flaws like lead-based plumbing or foundational issues. On the other hand, older homes may cost less and decrease your purchase price. You must make important financial decisions and conduct in-depth analyses to decide whether a cheaper purchase price will warrant more expensive repairs.
If you're new to flipping, search for more modern homes to flip. Maybe you can buy the home, do a few high ROI renovations and sell it at a profit. Flippers with less experience may want to ease into the process by purchasing a turnkey home and doing small fixes to make it profitable rather than undertaking a larger, more complex flip. While the profit margin will not be as high as it would be with a cheaper, distressed home, you are dealing with less risk.
Other aspects of a property that may make it lucrative are the things offered in the surrounding area. Are you in an area with good local schools? Do you have a homeowner's association in the neighborhood? Answering these questions can give you a better idea of what a potential buyer would be willing to pay for your property.
Identify High ROI Rehabs
Costly, long-term renovations should be avoided as much as possible when flipping. The best types of rehabs for house flippers are those that provide the highest return on investment (ROI) with the least amount of time, money, and effort.
A successful rehab project often focuses on cosmetic and strategic upgrades that enhance the property's appeal to potential buyers without requiring major structural upheavals or massive long-term renovations. For instance, fresh paint, new flooring, upgraded lighting and minor kitchen/bathroom remodels are common project tasks for flippers. Strategic upgrades include rehabs like installing energy efficient windows and doors or improving insulation to lower energy costs. When estimating rehab costs, be sure to get accurate numbers from contractors in your local area.
Of course, any necessary repairs like fixing structural and safety issues must be addressed as well. These repair costs must be factored into your budget. Be sure to repair any roof leaks, foundation cracks, and plumbing or electrical issues, as these problems could prevent the home from passing inspection.
Plan Your Flip Using a House Flipping Spreadsheet
Once you have a market and a property, it's time to fully flesh out your project. It's often helpful to plan your approach using a dedicated house flipping spreadsheet (download ours above) that calculates key metrics.
A house flipping calculator or Excel spreadsheet can help you track all financial aspects of the project, from the initial purchase price and renovation costs to carrying costs, selling expenses, and potential profit margins. A designated expense tracker will help you get a comprehensive overview of your total investment. Then, once you start your rehabs, you can refer back to this plan to anticipate costs, stay within budget, and avoid cost overruns that could jeopardize your returns.
Moreover, doing some financial modeling before your flip can help you make real-time adjustments and analyze specific scenarios. For example, you might test changes to different variables—such as an increase in materials or labor cost—to understand the impact it would have on your bottom line. This analytical approach can drastically increase your risk mitigation tactics by giving you a chance to prepare for these kinds of common pitfalls before they happen.
What Does the House Flipping Analysis Spreadsheet Cover?
REI Grove's house flipping analysis spreadsheet is designed to help investors estimate the cost and profitability of a potential flip. It combines purchase costs, rehab costs, carrying costs, selling costs, and final assessment metrics in one place.
This spreadsheet includes:
- Purchase price, loan-to-value ratio, and acquisition cost
- Property taxes and closing costs
- Loan amounts
- Mortgage and escrow carry
- Profit and return metrics
- And more!
Section 1: Purchase Costs
The purchase costs section helps flippers estimate how much cash and financing may be needed to acquire the property.
This section includes:
- Purchase price
- Loan-to-value ratio
- Interest rate
- Annual property tax estimate
Section 2: Repair and Carrying Costs
The repair and carrying costs section estimates what the investor may spend before the property is ready to sell. This includes the rehab budget, contingency reserve, and costs that accumulate while the project is under construction.
This section includes:
- Months for construction
- Contingency reserve
- Interior repairs
- Exterior repairs
Interior repair categories may include paint, drywall, plumbing, electrical, HVAC, flooring, cleaning, and additional repairs.
Exterior repair categories may include paint, siding, doors, garage, windows, roof, and additional repairs.
Section 3: Selling Costs
The selling costs section estimates the expenses tied to selling the finished property. These costs reduce the final profit from the project.
This section includes:
- Sales price
- Selling concessions
- Closing fees
- Total costs
Section 4: Final Assessment
The assessment section combines the purchase, project, and selling numbers to estimate whether the flip may be financially worth pursuing.
This section includes:
- After improvements selling price
- Acquisition cost
- Project costs
- Selling costs
Conclusion
With your analysis in place, you are now better informed to decide whether the home to-be-flipped is a strong investment. You should aim for a profit margin that is at least 30% of the sales price— keep in mind that, in 2025, the average ROI for house flipping was 25.5%. This business can be tricky, so it's important to get your facts straight before diving into a flipping project.
If you're ready to analyze your own flip, you can download a copy of REI Grove's house flipping spreadsheet below.
FAQs
What is a house flipping analysis?
A house flipping analysis is the process of estimating purchase costs, repair costs, carrying costs, selling costs, and projected profit before buying a property to flip.
What does REI Grove's house flipping analysis spreadsheet include?
The spreadsheet includes purchase costs, repair estimates, mortgage and escrow carrying costs, selling costs, and more.
Why is ARV important in house flipping?
ARV, or after repair value, is important because it estimates what the property may be worth after renovations are complete.
What are comps in house flipping?
Comps are similar recently sold properties used to estimate the flipped property's resale value.
Why does days on market matter?
Days on market matters because it shows how quickly homes are selling. A shorter DOM can signal stronger demand and may reduce carrying-cost risk.
What repair costs should flippers estimate?
Flippers should estimate interior repairs, exterior repairs, contingency reserve, total repair costs, and any safety or structural repairs needed before resale.
What are carrying costs?
Carrying costs are expenses that build up while the flip is in progress, such as mortgage payments, taxes, insurance, HOA fees, and escrow-related costs.