House Flipping Glossary

Essential terms every house flipper should know.

ARV (After Repair Value)

The estimated market value of a property after all renovations are complete. Used to calculate potential profit on a flip.

Holding Costs

Recurring expenses incurred while owning a property, including mortgage payments, insurance, taxes, and utilities.

ROI (Return on Investment)

A percentage measuring the profitability of an investment relative to its cost. Calculated as (Profit / Total Investment) × 100.

Rehab Budget

The total estimated cost of all renovations, repairs, and improvements needed to bring a property to market-ready condition.

Comparable Sales (Comps)

Recently sold properties similar to your subject property, used to estimate ARV and validate pricing decisions.