How Much Profit Should You Make on a House Flip?

If you are thinking about flipping your first house, one of the first questions you probably have is simple:

How much profit should you actually make on a flip?

The short answer:
Most profitable flips earn twenty to forty percent return on the total project cost, or thirty thousand to ninety thousand dollars depending on the deal and the market.

But there is more to it than a single number.
Here is the breakdown.

What Is a Good Profit on a Flip?

For most markets in 2025, a solid flip typically earns:

• $30,000 to $50,000 profit on beginner-friendly deals

These are smaller rehabs, less complex scopes, and great for first-timers.

• $50,000 to $90,000 profit on mid-level flips

These usually involve kitchens, baths, flooring, and light structural improvements.

• $100,000 or more on advanced flips

These require experience and strong contractor management.

Most new investors should aim for thirty to fifty thousand dollars on their first flip.
You want a win that builds confidence without exposing you to unnecessary risk.

What Determines Your Profit?

Here are the main factors that change your profit margin:

1. Purchase Price

Buying right is the single most important factor.
If you overpay, profit disappears instantly.

This is why the 70 percent rule exists.
It protects you from buying too high before rehab begins.

2. Rehab Cost and Accuracy

Your profit is determined long before you pick up a hammer.
Underestimating repairs by even five thousand dollars can erase your margin.

Rehab levels matter:

• Light rehab: 15 to 25 dollars per square foot

• Medium rehab: 30 to 50 dollars per square foot

• Heavy rehab: 60 to 85 dollars per square foot

Knowing which level a property needs is a skill, not a guess.

3. Holding Costs

This includes:

• interest

• utilities

• insurance

• taxes

• timeline delays

The longer the project takes, the more your profit shrinks.

4. ARV Accuracy

Your after repair value is your finish line.
If your ARV is inflated, your profit estimate collapses.

Agents have an advantage here, but even agents sometimes overestimate when they are excited about a deal.

5. Contractor Quality

Contractors can increase or decrease your profit more than any other variable.

Good contractors stay on budget and on time.
Unreliable ones can cost you thousands.

What Profit Should You Aim for as a Beginner?

For your first flip, aim for:

• $25,000 minimum profit

This is your safety margin.

• $35,000 to $45,000 ideal profit target

This is where most new investors land when the deal is analyzed correctly.

If your numbers come in below this, the deal may be too tight.

Is It Better to Aim High or Stay Conservative?

Always aim for a conservative analysis.

Smart investors prefer:

• an average win,

• over a big gamble.

It is better to have five flips that all profit forty thousand dollars than one flip that might profit a hundred thousand or lose thirty thousand.

Consistent, smaller wins build long-term success.

The Most Important Part: Knowing Your Numbers Before You Buy

Profit is made when you analyze the deal, not when you sell it.

A good flip is the product of:

• correct ARV

• accurate rehab estimates

• disciplined buying

• strong project management

These skills take time to learn, but once you understand them, flipping becomes far less risky and far more profitable.

Final Thought

Flipping can create life-changing income, but only if your numbers are solid before you close the deal.

That is exactly what mentorship is for.

If you want someone to walk properties with you, review your numbers, help you estimate repairs, and make sure your first flip is a win, Roy and Lanny are here for you.

👉 Learn more about the Navigator Mentorship

If you’d rather talk it through over coffee, Roy and Lanny are always up for that, too.
☕ Reach out anytime:
📱 Roy: 865-414-4162
📱 Lanny: 228-493-3808

Dad Joke Bonus:

I tried to organize a hide and seek tournament.
But good players are really hard to find.