How to compare flipping versus renting a property

Before you start

• Prepare a purchase price, repair estimate, rental estimate, and resale estimate.
• Know your financing assumptions and available cash.

1. 01

   Start with the same property and acquisition costs

   Keep purchase price and necessary repairs consistent across scenarios. If a rental finish differs from a resale finish, state that difference instead of silently changing the budget.

2. 02

   Model a flip

   Open the Fix & Flip calculator. Include acquisition, renovation, holding, finance, and selling costs. Note projected profit, cash needed, and how long that cash is tied up.

   Open Calculators↗
3. 03

   Model a rental

   Use Rental Property with a supportable rent estimate. Include vacancy, maintenance, management, taxes, insurance, and debt service where the calculator asks for them. Compare net cash flow rather than rent alone.

4. 04

   Check the financing path

   If your plan involves refinancing, use the BRRRR calculator or the property’s refinance section. Test the cash remaining in the deal after refinance, not just the projected new loan.

5. 05

   Compare both the return and the workload

   Review the exit-strategy information and, when relevant, Sell vs. Keep. Consider capital recovery, landlord responsibilities, resale uncertainty, and whether you have reserves for a longer hold.

6. 06

   Choose a primary strategy and a fallback

   Record which strategy meets your goals and what would make you change it. Do not rely on renting as a fallback until the property’s actual rental economics have been checked.