Strategy #0000000056 · Illiquid property projects
Fix-and-flip property cash-flow scenario
Calculate all-in costs and cash invested, then stress-test renovation overruns and delays.
Fix-and-flip buys a property needing work, renovates it and resells. Total cost includes purchase and construction, contingency, financing, taxes, insurance, utilities, holding period and transaction expenses. Estimate cash-on-cash return using a conservative resale price and schedule, with reserves for delays and structural surprises.
Resale value, scope, financing and timing are uncertain; property is illiquid.
Three ways in
Understand the story. Then inspect the risk.
Start with a familiar situation, check the payoff, then test how the numbers change.
The idea · in two minutes
What resale cash flow and cash-on-cash return remain after rehab, financing, holding and sale costs?
Jack buys for 100,000, budgets 25,000 for renovation and hopes to resell at 160,000. Rose adds a 15% contingency, six months of holding costs, leverage, financing rate and transaction costs.
The calculator deducts all entered costs and divides by estimated cash invested for a simplified ROI. It does not estimate resale value, property tax, inspections or contractor bids.
Permits, contractor delays, hidden damage, higher rates or falling prices can compress returns. Stress-test a lower resale price, overruns and longer holding time, and ensure equity can absorb a loss.
- Purchase price assumptionEnter purchase/resale, renovation budget, contingency, holding months/cost, leverage and transaction fees.
- Renovation budget plus contingencyNot a valuation or investment recommendation; no local taxes, contractor quotes, insurance, permits or time-to-sale data.
- Resale less all-in costsIllustrative expiry outcome.
Illustrative research examples only. They are not live signals or a recommendation.
The mechanics · payoff and exposure
Profit=P_{sale}-[P_{buy}+Rehab(1+c)+Fees+Carry+Funding],\quad ROI=Profit/CashInvested
c is renovation contingency; transaction fees apply to purchase and sale prices; financed share and annual funding rate are user-entered.
Greeks: the directional intuition
- 工程成本
- Measures sensitivity to implied volatility.
- 融資與工期
- Measures sensitivity to implied volatility.
- 估值與流動性
- Measures sensitivity to implied volatility.
Profit=P_{sale}-[P_{buy}+Rehab(1+c)+Fees+Carry+Funding],\quad ROI=Profit/CashInvested
Practical context · published observations
Fix-and-flip property cash-flow scenario: read the record with its caveats.
The chart uses the published figures or explicitly labelled study inputs below. A historical index or model replay is not the same as an investor’s realised account return.
不是估價或投資建議；沒有本地稅費、施工報價、保險、許可或市場出售時間資料。 Source ↗ · Methodology ↗
Change assumptions and inspect the scenario
Inputs illustrate the strategy mechanics; they are not live quotes, forecasts or investment advice.
Variants · same family, different risk levers
Related strategies can have different exposures and failure modes.
Compare the mechanism and its limits.
| Related strategy | Relationship | What changes | New cost or risk |
|---|---|---|---|
| Cosmetic flip | Surface renovation | Refreshes a property for a short turnaround. | Competition and resale-price sensitivity. |
| Major rehabilitation | Structural work | Creates value but needs permits and a longer schedule. | Cost and scope risk. |
| Buy-rehab-rent-sale | Rental exit option | Chooses resale or rental after rehabilitation. | Capital lock-up and landlord operating risk. |
Not a valuation or investment recommendation; no local taxes, contractor quotes, insurance, permits or time-to-sale data.
Read beyond the summary
References
Primary sources and research used to describe the strategy and its limits.