This is the data checklist for screening a fix and flipFix & FlipBuy a property below market value, renovate it, and sell it for a profit—typically within 6–12 months.Read more in the glossary before you commit to a deep dive. A flipFix & FlipBuy a property below market value, renovate it, and sell it for a profit—typically within 6–12 months.Read more in the glossary is won or lost on four inputs: after repair valueAfter-Repair Value (ARV)The estimated market value of a property after all planned renovations are completed.Read more in the glossary (ARVAfter-Repair Value (ARV)The estimated market value of a property after all planned renovations are completed.Read more in the glossary), rehab costsRehab / Renovation CostsThe estimated total cost of repairs, improvements, and updates required to stabilize or improve the property.Read more in the glossary, holding costsHolding CostsOngoing costs during a renovation or vacancy period: mortgage interest, taxes, insurance, utilities. Accrues monthly until the property is rented or sold.Read more in the glossary, and how fast the finished house sells — its days on marketDays on Market (DOM)The number of days a property has been listed before going under contract or selling.Read more in the glossary. Get those right and the 70% rule70% RuleFix-and-flip heuristic: maximum offer = 70% of ARV minus estimated repair costs.Read more in the glossary gives you a fast maximum offer; get any of them wrong and the profit evaporates.
Unlike a rental, a flip has no recurring income to bail out a mistake. Every assumption is a one-time bet that has to land.
Who this is for
This is for investors who have read the Fix and Flip guideLearn more in this articleFix and Flip for Beginners: Estimate Profit Before You Buy and want a disciplined screening sequence for individual deals. It assumes you understand the strategy and need a fast way to filter properties before deeper diligence.
It does not re-teach each concept — every term links to its glossary definition. For the full strategy, start with the guideLearn more in this articleFix and Flip for Beginners: Estimate Profit Before You Buy.
Step 1: Establish ARV from closed comps
Everything downstream depends on this number, so build it carefully.
Step 2: Scope the rehab realistically
A rough scope turns into a real budget only when you walk the property and price the work.
Step 3: Add up holding and selling costs
These quiet costs accumulate every month you own the property and again when you sell.
Cost bucket
Examples
Holding costsHolding CostsOngoing costs during a renovation or vacancy period: mortgage interest, taxes, insurance, utilities. Accrues monthly until the property is rented or sold.Read more in the glossary
Hard money loanHard Money LoanShort-term, asset-based financing from private lenders—typically used for fix-and-flip or BRRRR acquisition/rehab. Higher rates and fees; faster to close.Read more in the glossary points and interest
Selling costsSelling CostsCosts paid when selling a property, including agent commissions, transfer taxes, title fees, seller concessions, and closing costs.Read more in the glossary
Agent commission, transfer taxes, concessions, closing
Step 4: Apply the 70% rule for a first-pass offer
The 70% rule70% RuleFix-and-flip heuristic: maximum offer = 70% of ARV minus estimated repair costs.Read more in the glossary gives a fast maximum allowable offerMaximum Allowable Offer (MAO)The highest price an investor can pay for a property and still achieve their minimum required return.Read more in the glossary:
MAO = (ARV × 0.70) − rehab costsRehab / Renovation CostsThe estimated total cost of repairs, improvements, and updates required to stabilize or improve the property.Read more in the glossary.
The 30% haircut is meant to absorb holding costsHolding CostsOngoing costs during a renovation or vacancy period: mortgage interest, taxes, insurance, utilities. Accrues monthly until the property is rented or sold.Read more in the glossary, selling costsSelling CostsCosts paid when selling a property, including agent commissions, transfer taxes, title fees, seller concessions, and closing costs.Read more in the glossary, financing, and profit. Run it in the 70% rule calculator.
Step 5: Confirm with a full profit calculation
The 70% rule70% RuleFix-and-flip heuristic: maximum offer = 70% of ARV minus estimated repair costs.Read more in the glossary screens; an itemized projection decides. Subtract every cost from ARV:
Run the complete model in the Fix and Flip Profit calculator. If the profit does not justify the risk and the months of capital and effort, the deal fails — regardless of what the 70% rule said.
Step 6: Check the exit timeline
A flip's profit is exposed to the market until it sells. Check local days on marketDays on Market (DOM)The number of days a property has been listed before going under contract or selling.Read more in the glossary for renovated homes in your price band.
Pass/fail summary
Check
Pass condition
ARV
Set from recent closed comps of renovated homes
Rehab
Line-itemed from a walkthrough + contingency
Holding & selling
Fully accounted, tied to a realistic timeline
70% rule
Offer at or below MAO
Full profit
Margin justifies the risk and capital
Days on market
Stable; deal survives a slower sale
FAQ
Why is ARV so important in a flip?
Because it is the ceiling on everything you can earn. Every other number — your offer, your rehab budget, your margin — is derived from ARV. Overstate it and the whole model is built on a number the market will not actually pay.
What does the 70% rule actually cover?
The 30% you subtract from ARV is meant to absorb holding costs, selling costs, financing, and your profit. It is a fast filter, not a precise budget, so always confirm a screened deal with an itemized profit calculation.
How much contingency should I add to a rehab budget?
A common range is 10–20%, weighted higher for older homes and heavier rehabs. The contingency exists for the conditions you cannot see during a walkthrough — outdated wiring, hidden water damage, failing systems behind finished walls.
What if the house takes longer to sell than planned?
Holding costs keep accruing — loan interest, taxes, insurance, utilities — while the unsold house also signals price pressure. Stress-test your model for an extra two to three months on market; if a normal delay wipes out the profit, the margin was too thin to begin with.
For the strategy behind these numbers, see the Fix and Flip guideLearn more in this articleFix and Flip for Beginners: Estimate Profit Before You Buy. To compare flipping with rental strategies, see Real Estate Investing Strategies ComparedLearn more in this articleReal Estate Investing Strategies Compared: Buy and Hold, BRRRR, Fix and Flip, House Hack, and STR.
This article is for education only and is not financial, legal, tax, or investment advice. Consult qualified professionals before buying property.
