Fix & Flip Calculator (70% Rule) — Philadelphia, PA
Pre-filled with localized assumptions for Philadelphia. Replace the defaults with your real numbers (rent comps, taxes, insurance, repairs, and reserves) to get an accurate result.
Inputs
Results
- Purchase price: $155,000
- Rehab costs: $36,000
- Purchase closing: $2,500
- Holding costs (5 mo): $9,413
- Sale closing (8%): $20,800
- Total costs: $223,713
- Financed by loan: $171,900 (repaid at sale)
- ARV (sale price): $260,000
- Total all-in costs: $223,713
- Net profit (ARV − all costs): $36,288
- ROI: 168.00% (5 months)
- Annualized ROI: 403.19%
- Max purchase (70% rule): $146,000
- Your purchase price: $155,000
- ✗ Above 70% rule (-$9,000 over)
Tip: The 70% rule ensures adequate profit margin. Hard money lenders typically offer 90% LTC at 10-12% interest.
Philadelphia Local Market Note
Informational onlyPhiladelphia offers some of the lowest big-city entry prices on the East Coast, with rowhome neighborhoods like Kensington, Point Breeze, and Brewerytown popular for BRRRR strategies. The city levies its own realty transfer tax on top of the state's — combined it exceeds 4%, materially affecting flip math. A ten-year tax abatement program for improvements still exists but was scaled back for residential projects starting in 2022.
Local context for general information — not financial, legal, or tax advice. Verify current regulations and market data before making investment decisions.
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 Philadelphia, PA. 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 Philadelphia
Start with the pre-filled assumptions for Philadelphia, 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 PA
Explore nearby cities to compare assumptions and outcomes.