Properly estimating your rehab costs -- as well as what you can sell a home for -- is critical to doing a house-flipping deal right.
For one, it helps you set your budget. Without it, you're just shooting in the dark (and probably paying way too much for it, too).
It also helps you determine what price to offer. And if you can't snag the property for 70% or less than that projected after-repair value? It can also tell you to run for the hills.
Need help estimating your potential flip's rehab costs or final price tag? Here are some of the best tools to help.
Property Fixer is a mobile app made just for real estate investors. It offers property reports to help you analyze a home's potential, and it also has a built-in flip analysis calculator that lets you evaluate a project's viability and potential return on investment (ROI). It can help you home in on an appropriate offer price, too.
Kukun is a pretty new one, but its home-renovation cost calculator is one of the best out there. You just choose your project type, specify size and scope, and add in your address, and the tool does the rest. You can even add in multiple properties if you're planning to do several flips at once.
Flipper Force is an all-in-one platform designed specifically for flippers. It has a comprehensive repair estimator tool as well as an ARV calculator. There is also a built-in flip analyzer, project scheduler, calendar, and more. It's a paid tool, but there's a 30-day trial if you want to give it a spin before putting down that hard-earned cash.
HouseCanary's Property Explorer tool lets you dive into local home values, rents, and sales trends so you can accurately comp a property. You can also use the company's Automated Valuation Model to predict a home's future price. PropStream is a similar solution you can also consider.
HomeAdvisor's (NASDAQ: ANGI) True Cost Guide
With the True Cost Guide, you can get an idea of what various repair and renovation project costs are in your exact area. The site's estimates are ZIP code-specific, and they're based on real-life, quoted projects in your community. It's free to use, too.
Homewyse is similar, but it will actually give you a full breakdown of all your expected costs -- including labor, materials, and more. There is also a job-cost planner that gives you a quick look at average price ranges, which you can then take when negotiating with your contractor or the seller.
The bottom line
Getting your numbers right is vital if you want to ensure a high-ROI flip. Fortunately, there are several tools that can help. Want more advice on calculating rehab costs? Check out our guide.