How do you determine if a house is worth flipping. So i actually just do do the math backwards. One of the first questions. I begin to ask myself is is the after repaired value also known as the arv once i determine what the arv is i then can do the math backwards taking estimated renovation costs closing costs and miscellaneous fees into consideration before even making my initial offer on the property.

Now one of the things that you must know is that every deal that we choose to take advantage of needs to meet a 15 cash on cash return meaning that if i'm all in with the dollar amount that i use to purchase the property and my renovations at a hundred thousand. I at least need a 15 000. Net return for me to accept that it meets my actual criteria.