Fix & Flip Calculator (70% Rule) — Gary, IN
This page starts with localized assumptions for Gary so you can run quick scenarios. Replace the defaults with your real numbers (rent comps, tax/insurance estimates, repairs, and reserves) to get an accurate result.
Inputs
Results
- Purchase price: $160,000
- Rehab costs: $35,000
- Purchase closing: $2,500
- Holding costs (5 mo): $9,363
- Sale closing (8%): $20,800
- Total costs: $227,663
- Loan payoff: $175,500
- ARV (sale price): $260,000
- Total all-in costs: $227,663
- Gross profit: $32,338
- Loan payoff: −$175,500
- Net profit: -$143,163
- ROI: -650.74% (5 months)
- Annualized ROI: -1561.77%
- Max purchase (70% rule): $147,000
- Your purchase price: $160,000
- ✗ Above 70% rule (-$13,000 over)
Tip: The 70% rule ensures adequate profit margin. Hard money lenders typically offer 90% LTC at 10-12% interest.
How to Use This Fix & Flip Calculator (Mini Guide)
Analyze house flipping deals using the 70% rule, calculate profit after holding costs and sale expenses, and ensure you're not overpaying for the property. These defaults are pre-filled for Gary, IN. Always replace them with your real numbers when you have them.
What this calculator measures
Estimates net profit on a fix-and-flip deal after all costs (purchase, rehab, holding, financing, sale).
Checks your purchase price against the 70% rule to ensure margin.
Calculates ROI and annualized ROI based on hold period.
The 70% rule explained
Max purchase price = (ARV × 70%) − Rehab Costs.
This leaves ~30% margin for profit, holding costs, and sale costs.
Conservative flippers use 65%, aggressive markets may go to 75%, but rarely higher.
Critical inputs
ARV: use conservative comps — optimistic ARV is the #1 reason flips fail.
Rehab costs: add 10-20% buffer for unknowns.
Holding period: longer holds = higher costs (interest, taxes, utilities).
Sale closing costs: typically 8-10% (6% realtor, 2-4% closing/transfer).
What makes a good flip
Net profit ≥ $30K-$50K minimum (worth your time and risk).
Follows 70% rule with conservative ARV and rehab.
Hold period ≤ 6 months (less carry cost risk).
Annualized ROI ≥ 20-30%+.
Common mistakes
Underestimating rehab — always add a buffer.
Overestimating ARV — use sold comps, not active listings.
Ignoring holding costs — they add up fast on longer projects.
Paying above 70% rule without solid justification.
How to use this calculator in Gary
Start with the pre-filled assumptions for Gary, then replace them with your deal’s numbers. If you’re an investor, keep vacancy and reserves conservative. If you’re a homeowner, pay special attention to property taxes and insurance — these often drive the rent vs buy decision.
Nearby cities in IN
Explore nearby cities to compare assumptions and outcomes.