How to Analyze a Fix and Flip Property (Comps, Math, and More!)

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https://www.biggerpockets.com/analysis Flipping properties can be a great way to make cash… but if you analyze the deal wrong, you could wind up broke instead! In this video, Brandon Turner from BiggerPockets.com shares his exact method for doing the math on a fix and flip property. This video includes two parts:

1.) How to use “comps” (comparable sales) to estimate the After Repair Value (ARV)

2.) How to analyze the deal to decide how much you should pay for the property. This part of the video uses the BiggerPockets House Flipping Calculator to determine the ideal purchase price to make this flip a home run!

For more on house flipping, rental properties, and more – visit https://www.biggerpockets.com

20 COMMENTS

  1. It's been 5 years since i bought a foreclosed house. Thanks for the refresher! Btw I found bp by buying your audio book on audible.

  2. Are you the one that eventually purchased the property? I see it sold for $90,000 then flipped 8 months later for $224,000. Also, it says 5 bedrooms instead of 4. If it was you, how much were the actual repair costs including the 5th bedroom addition?

  3. Nice video! I have a comment, however…
    I have been flipping for a few years, and of course, comps are always the best way to figure out if a home to flip could be a success. However, in this video, all the comps in figuring out the "ARV" of this property are for homes that have not been updated and need a lot of work. So, what is missing is a comp of a home that has already had some significant upgrades so we can assess the value of improvements in that particular market. If these more accurate comps are not available, it comes down to other data on the location … comps for refurbished homes in surrounding neighborhoods and their proximity/similarity to this neighborhood, crime reports, quality of schools and retail nearby, walk score, economic/business info on the area etc. Without other homes to compare that have already been flipped, it comes down to assessing whether buyers are willing to pay the extra for a newly refurbished home in that neighborhood.

  4. If there is an extra lot included you have to see what the land value is in the area and then determine if you want to include the lot or sell it individually.

  5. Price/sf is also not an accurate indicator of value because many factors of value are rolled up into the $/sf which means that as the sf increase the $/sf decreases.

  6. Starting with a "price" is working the comps backwards. Focus on location first then year build, then gla, then room count, then amenities. Since these are investment homes, you need to know what's happening with the REO market and FNMA sales and if you limit yourself by price, you are missing out on very valuable information.

  7. thank you for explaining. im an agent that works with my new broker who flips. but i cant seem to help find the next flip because i dont understand how to do the numbers.
    she does them in a heart beat but doesnt have the time to show me.
    so im here searching for help. I also have a cash buyers list but im clueless and in limbo as i dont get it but i hope after watching this video over and over i should. Thanks

  8. Is flipping houses something you could actually do as say a 2nd job? You have your main career job put wanna make extra money on the side. Is it smart to do it like that or buying real estate something you have to be a 100% in on?

  9. Do I make an offer before or after I've discussed it with a hard money lender? Do I contact the lender with all of these numbers already figured out or do they give me a fixed amount and I have to use that and make it work? I'm starting with no money….like at all. Can I do that? And I don't have an agent. How do I go about finding one to send me comps and help me out? I would really appreciate your help. I'm only 22 and want to start doing this within the next month or so.

  10. I am so obsessed with your channel!!! I love the calc videos and especially all of the finance ones! Keep up the great work!

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