Why Your Fix and Flip Calculations Turn Out WRONG

Doing fix and flip calculations isn’t as simple as many people think. Before closing on a property, you don’t know how many problems may spring up out of nowhere. This is why it’s so important to assess your risk when performing a flip as opposed to looking solely at your estimated net profit.

Watch Tarl as he walks through this three-bedroom, two-bathroom townhouse in the Seattle, Washington area. You’ll see how he calculated his initial numbers, what his final profits look like, and why he always uses the rate of return (or cash on cash return) instead of net profit calculations to decide on whether or not a flip is worth pursuing.

I know what you’re thinking, “why would I use cash on cash return when I’m financing my whole deal?” Worry not! Tarl also walks through why this calculation is crucial for flippers even when you’re financing a deal with hard or private money loans.

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How to Calculate Cash-on-Cash Return (Made Easy!):
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Видео Why Your Fix and Flip Calculations Turn Out WRONG канала BiggerPockets