How to Analyze a Fix & Flip Deal Like a Pro (Step-by-Step)

03/09/2026
Ben

A great real estate deal isn’t about guesswork — it’s about numbers.

Whether you’re new to investing or looking to sharpen your skills, understanding how to properly analyze a fix-and-flip deal is critical to your success.

At TruComfort Homes, we believe informed investors make better decisions — and better investments.

Step 1: Determine the After Repair Value (ARV)

The ARV is the estimated value of the property after renovations are complete.

To calculate ARV:

  • Look at comparable sales (“comps”) in the area

  • Focus on similar size, condition, and location

  • Use recent sales (within 3–6 months)

Step 2: Estimate Repair Costs

Next, determine how much it will cost to bring the property up to market standards.

Typical repair categories include:

  • Roof, windows, and structural work

  • Kitchens and bathrooms

  • Flooring and paint

  • Mechanical systems (HVAC, plumbing, electrical)

Always build in a buffer for unexpected costs.

Step 3: Apply the 70% Rule

A common guideline investors use is the 70% rule:

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This helps ensure there is enough margin for profit, holding costs, and risk.

Step 4: Factor in Additional Costs

Beyond purchase and repairs, don’t forget:

  • Closing costs

  • Holding costs (utilities, taxes, insurance)

  • Financing costs

  • Agent commissions (if reselling)

Step 5: Calculate Your Profit

Once all costs are accounted for, calculate your projected profit.

A solid deal typically includes:

  • A strong margin of safety

  • Room for unexpected expenses

  • A clear exit strategy

Example Deal Breakdown

  • ARV: $300,000

  • Repairs: $50,000

Using the formula:

Maximum Offer = ($300,000 × 0.7) – $50,000 = $160,000

This gives a clear target for your acquisition price.

How TruComfort Homes Helps Investors

We understand that speed and confidence are key in real estate investing.

That’s why we:

  • Pre-screen opportunities

  • Provide clear deal insights

  • Focus on properties with real upside potential

Our goal is to help investors move quickly without sacrificing due diligence.

Ready to Take the Next Step?

If you’re looking for investment opportunities that are already analyzed and ready to go, we’d love to connect.

👉 Join our investor list to receive new deals directly.

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