Flip Calculator

After Renovation Value (ARV)

This is the value of the property after completion of the renovations specified on the scope of work.

Property Taxes (% annual of ARV)

Property taxes are charged by state and local governments based upon the value of the property. These taxes typically fund education and other local services.

The model will calculate this amount based upon a % of the ARV

Home Insurance

Home insurance typically provides both dwelling and liability coverage. Dwelling coverage protects the homeowner against damage to the property and is often referred to as “fire insurance” although it also covers most other types of potential damage. Liability coverage protects against lawsuits involving injuries that occur on the property and is often referred to as “slip-and-fall insurance.”

The model will calculate this amount based upon a % of the ARV

Utilities

Ongoing utility costs would typically include water, gas and electric

Transfer Taxes

The state and/or local tax charged on the transfer of deed between two parties. Pennsylvania charges 1% of the sale price (or fair market value) and the City of Philadelphia charges an additional 3.278% for the sale price (or fair market value) for a total of 4.278%. Both buyer and seller are held jointly responsible for payment of the tax and this total amount is customarily split between the two parties (although this can be negotiated).

Broker Commission

This fee (as a percentage of the sale price) compensates a real estate agent to market and sell the property. The typical fee is between 5% and 6% of the sales price and will be split between the listing agent and buyer’s agent.

Filing Fees

These fees are charge by the appropriate government agency for registering and recording the deed, mortgage and assignment of rents so that they become a matter of public record.

Title Insurance

Title insurance is insurance that protects both the buyer and lender from financial loss caused from defects in title of the property. In Pennsylvania, the cost of both the lender’s and buyer’s policies is regulated by the Commonwealth and is typically borne by the buyer.

The model will estimate this amount based upon a % of the Purchase Price.