Spread = ARV − (Purchase + Rehab + Holding Costs + Financing Costs + Selling Costs)
FAQ
What's the 70% rule?
A quick screening rule: Maximum Purchase Price ≈ (ARV × 70%) − Rehab Cost. Treat it as a fast filter, not a final underwrite.
What counts as a selling cost?
Agent commissions (typically 5–6% combined), closing costs, and any staging or concessions — most flippers budget 8–10% of the sale price combined.
What are holding costs?
Financing interest, property taxes, insurance, and utilities for every month the property is owned but not yet sold.
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