Is the property worth flipping?
House Flip Deal Analyser
Before embarking on a house flipping project, it’s essential to ensure that your investment is sound and that the potential profits align with your goals. Failing to do so could mean risking a substantial amount of money. This is where the house flip deal analyser comes in – a powerful analysis tool designed to prevent hasty decisions and guide you towards profitable house flipping ventures.
What Does the House Flip Analyser Do?
The house flipping deal analyser is designed to provide a comprehensive evaluation of the potential profitability of a house flip project. It provides you with the following metrics:
- Gross profit
- Net profit
- Return on investment (ROI)
- Cash investment needed
- Loan costs
- Net sale value.
It also boasts an additional feature – the postcode analyser. This provides you with further insights into the desirability of the property – providing valuable data such as the area’s growth over the past five years, whether it’s a buyers or sellers market, and the average yield on the road.
How to Use the House Flip Calculator
- Purchase Details – Begin by entering the purchase price of the property, along with associated costs such as stamp duty, closing costs, and anticipated refurb expenses.
- Loan Details (if applicable) – If you plan to use a loan (such as a mortgage or bridging loan) to finance the house flip, input the Loan-to-Value (LTV) ratio, monthly interest rate, and other relevant fees.
- Monthly Holding Costs – Consider the ongoing expenses of the property, including insurance, utility bills, council tax, and potential maintenance costs.
- Sale Details – Estimate the duration of your holding period (typically between 6 and 9 months), enter the projected end value of the property, and include the commission of the selling agent (if applicable).
- House Flip Profit and ROI Calculated – The tool performs calculations for a range of metrics that assist in evaluating the property. The two primary metrics to pay close attention to are the net profit and the ROI of the house flip.
If you find this tool valuable, be sure to create a free account with our partner Lendlord who helped us bring you this tool. This will allow you to leverage the Property Flip Calculator whenever needed and store your results for future reference.
Financing This House Flip Opportunity
If the calculated ROI aligns with your goals and expectations, you might be ready to move forward. We’d recommend exploring the deals offered by our favourite property finance brokers: Lendlord
Offering some of the cheapest rates currently on the market and with the application process being fast, simple and entirely online, it’s the best way forward. If you’re not sure about which financing method is best, check out the following guides: