Fix and Flip Analysis Report

Subject Property: [[Property Full Address]], [[City]], [[State]] [[ZIP]]
Prepared For: [[Investor / Buyer Name]]
Prepared By: [[Analyst or Broker Name and Company]]
Report Date: [[Report Date]]
Analysis Effective Date: [[Effective Date of Analysis]]

This Fix and Flip Analysis Report estimates the after-repair value (ARV), maximum allowable offer (MAO), itemized rehabilitation budget, all carrying and selling costs, projected net profit, return on investment (ROI), and annualized return for the proposed acquisition and resale of the subject property. All projections use the 70% Rule as a primary underwriting screen and incorporate market-derived adjustments from comparable sales. This is an analytical model only and is not a guarantee of results. Actual outcomes depend on market conditions, contractor performance, holding period, and buyer demand at resale.

1. Executive Summary

Purchase Price: $[[Purchase Price]]
Estimated ARV: $[[ARV]]
Estimated Total Project Cost (incl. all-in): $[[Total Project Cost]]
Projected Net Profit: $[[Projected Net Profit]]
Projected ROI: [[ROI Percent]]%
Projected Annualized Return: [[Annualized Return Percent]]%
70% Rule MAO: $[[MAO]]
Offer vs MAO Headroom: $[[MAO Headroom or Overage Note]]

Recommendation: [[Buy / Negotiate Lower / Pass, with brief rationale]]

The analysis assumes a [[Holding Period in Months]]-month holding period, [[Rehab Duration in Weeks]] weeks of active rehabilitation, and [[Financing Type: Hard Money / Private Money / Cash / Conventional]] financing at the terms detailed below.

2. After-Repair Value (ARV) Derivation from Comparables

ARV is estimated from recent closed arm's-length sales of comparable properties that have been renovated to a similar finished condition. Selection criteria: same property type, GLA within +/- 20%, similar bed/bath count, location within [[Radius Miles]] miles or same submarket, sold within the last [[Comps Time Window Months]] months.

Comparable Sales Summary

Adjustment Notes (applied to arrive at indicated ARV):
- Subject GLA adjustment: $[[GLA Adj per Sq Ft]] per sq ft difference.
- Subject condition/upgrades premium or discount vs comps: [[+/- $X or %]].
- Location / school / amenity adjustment: [[Description]].
- Market condition (time) adjustment if sales older than 90 days: [[+/- % or $]].

Indicated ARV (reconciled): $[[ARV]]
ARV per Square Foot: $[[ARV PSF]]
Confidence Range: $[[Low ARV]], $[[High ARV]]

3. Maximum Allowable Offer (MAO), 70% Rule

The 70% Rule is a widely used underwriting guideline for fix-and-flip projects. It limits the maximum purchase price (plus repairs) to protect against overpayment and market softening.

Formula:
MAO = ARV × 0.70 − Estimated Repairs (including contingency)

Calculation:
- ARV × 0.70 = $[[ARV]] × 0.70 = $[[ARV70]]
- Less Estimated Repairs (incl. contingency): $[[Total Rehab + Contingency]]
- Maximum Allowable Offer (MAO): $[[MAO]]

Offer Analysis:
- Proposed Purchase Price: $[[Purchase Price]]
- Headroom (or Overage) vs MAO: $[[MAO - Purchase Price or negative]]
- 70% Rule Status: [[Pass / Borderline / Fail, requires price reduction or scope reduction]]

Hard-money and private lenders commonly underwrite to this or similar metrics (often 65, 70% of ARV after repairs). Exceeding the MAO materially increases risk of negative equity at resale.

4. Itemized Rehabilitation Budget

All costs are estimates based on [[Scope Source: contractor bid / local averages / Xactimate]] as of the report date. A [[Contingency Percent]]% contingency is applied to the subtotal of direct costs.

Rehab Line Items

1. Demolition and disposal
2. Foundation / structural repairs
3. Roofing replacement or repair
4. Exterior siding / painting / trim
5. Windows and exterior doors
6. HVAC replacement or major service
7. Electrical panel / wiring / fixtures
8. Plumbing re-pipe or fixture upgrades
9. Insulation and air sealing
10. Drywall / plaster repair and texture
11. Interior paint (prime + two coats)
12. Flooring (hardwood refinish or LVP/tile)
13. Kitchen cabinets, countertops, backsplash, appliances
14. Bathroom(s) remodel (vanities, tile, fixtures, tub/shower)
15. Lighting package (recessed + decorative)
16. Landscaping and curb appeal (front + rear)
17. Permits, inspections, and fees
18. General conditions / project management / overhead
19. Contingency ([[Contingency Percent]]% of direct subtotal)

Rehab Budget Summary Table

Assumptions: All work performed by licensed contractors; no major unforeseen structural or environmental issues (see Risks). Actual bids may vary [[+/- %]].

5. Holding Costs (Carrying Costs During Project)

Holding period: [[Holding Period Months]] months from acquisition to closing of resale (includes [[Rehab Weeks]] weeks rehab + [[Listing / Sale Period Weeks]] weeks marketing and closing).

Monthly Holding Cost Breakdown

Total Holding Costs for Project: $[[Total Holding Cost]] (monthly × months + any prorated one-time)

Financing Specifics (Hard Money Typical Terms):
- Interest rate: [[Hard Money Interest Rate]]%, [[Hard Money Max Rate]]% per annum (interest-only).
- Origination points: [[Points Min]], [[Points Max]] points (1 point = 1% of loan amount), due at funding.
- Term: typically 6, 12 months with extension options at additional cost.
- Prepayment: often allowed after minimum interest period.

6. Selling Costs at Resale

Estimated Selling Costs

7. Project Profit & Return Analysis

All-In Investment

Net Profit Calculation
ARV − Total Invested Capital − Any other reserves = Net Profit: $[[Net Profit]]

Return Metrics

• Cash-on-Cash ROI = (Net Profit / Total Invested Capital) × 100 = [[ROI Percent]]%
• Annualized Return = ROI × (365 / Actual Hold Days) = [[Annualized Return Percent]]%
• Example: On a [[Holding Days]]-day hold, annualized return converts the project ROI to an annual rate for comparison with other investments.

Sensitivity Table (Net Profit at Varying ARV and Rehab Overruns)

8. Project Timeline

1. Acquisition and due diligence (inspection, title, financing)
2. Closing and funding
3. Demolition and rough-in phase (weeks 1, [[X]])
4. Systems and major construction (weeks [[X]], [[Y]])
5. Finishes and detailing (weeks [[Y]], [[Z]])
6. Final inspections, certificate of occupancy if required
7. Professional photography, staging, listing
8. Marketing and buyer showings
9. Under contract and closing (add [[Contingency Weeks]] buffer)

Target Total Hold: [[Holding Period Months]] months.
Critical Path Risks: Permit delays, material lead times, contractor availability, weather.

9. Financing Scenario Comparison

Hard Money / Private Lender (Primary Scenario)
- Loan amount: [[Loan to Cost or ARV %]] of costs or purchase + rehab.
- Interest + points as modeled above.
- Speed: funds in [[Days to Fund]] days.
- Requirements: experience, reserves, exit strategy, personal guarantee often.

All-Cash Purchase
- No interest or points.
- Lower total cost but ties up equity; opportunity cost of capital at [[Opportunity Rate]]%.
- Stronger negotiating position with sellers.

Cash-Out Refinance or Other (Post-Rehab)
- Not primary; may be used to pull equity after stabilization if hold extends.

10. Risk Factors and Mitigation

1. ARV over-estimation, mitigate with conservative comp selection and 5, 10% haircut on reconciled value.
2. Rehab cost overruns, use detailed scope + 15, 20% contingency; obtain multiple bids.
3. Extended holding period, budget extra months of interest/taxes; have extension fees modeled.
4. Market softening, monitor DOM and price reductions in submarket; price to sell in 30, 45 days.
5. Title / lien / survey issues, order commitment early; budget for curative costs.
6. Contractor default or quality, use licensed/insured; retainage; milestone payments; backup contractor.
7. Environmental or code surprises (mold, foundation, lead), pre-purchase inspection + scope walk.
8. Financing fallback, maintain cash reserves or secondary private source.

Exit Strategies if Primary Sale Delayed:
- Lease option or short-term rental while listed.
- Price reduction of [[Price Reduction Percent]]% to accelerate.
- Seller financing to qualified buyer (increases buyer pool but adds risk).

11. Key Assumptions and Data Sources

All [[Token]] values are user-provided or defaulted from typical market ranges as of the report date.
- ARV based on closed sales; active listings used only for upper-bound guidance.
- Rehab costs local averages or provided bid; verify with licensed contractors.
- Tax and insurance prorations use current assessor and quote data.
- Hard money terms are representative (8, 15% interest + 2, 4 points); actual quotes required.
- No allowance for major capital items beyond scope (e.g., new septic, pool rebuild) unless itemized.

Sources (as of Report Date): Local MLS closed comps, county assessor records, contractor bid averages, lender term sheets, insurance quotes. Verify all figures with primary sources before committing capital. This report is for analytical purposes and does not constitute investment, legal, or tax advice.

> Template example, not professional (legal/financial/medical) advice. Figures, rates, and timelines must be verified against current local market data, contractor bids, lender terms, and tax records. All user inputs appear as [[merge fields]]. Actual results may differ materially from projections. Consult licensed professionals (real estate attorney, CPA, licensed contractor, appraiser) before proceeding.