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So you’ve found a potential flip. The numbers look promising… but before you get swept up in the hype of your first (or fifth) deal, there’s one question every investor needs to ask:
“How much is my time worth?”
Real estate investing is about more than finding a “good deal.” It’s about building a business that rewards your time, energy, and risk. If you’re not asking yourself what three months of work is actually worth to you – you’re doing it wrong.
The Real Math Behind a Flip
A lot of investors throw around projected profits like $30k, $40k, $60k…
But here’s the problem: they’re skipping key expenses that eat away at that number.
When you analyze a flip deal, factor in:
- Purchase price
- Rehab costs
- Realtor fees (on the resale)
- Holding costs (like interest, utilities, insurance)
- Closing costs
- Capital gains taxes
Example:
Let’s say your profit is $30,000 after selling.
Now subtract:
- $4,500 in hard money loan interest (3 months at $1,500/month)
- $2,500 in realtor fees
- $3,000 in closing costs
- $4,500 (15%) for capital gains
That leaves you with $15,500.
Now ask yourself:
Is $15,500 worth 3-4 months of managing contractors, chasing timelines, and stressing over inspections?
It might be. But you need to know your number before you commit.
What’s Your Time Worth?
The answer varies for every investor:
| Investor Type | Minimum Net Profit for a Flip |
| Full-time flipper | $30,000+ (per deal, recurring) |
| High-income W2 employee | $40,000+ (to justify time) |
| Side hustler with time | $15,000–$25,000 (if learning) |
“Your ‘yes’ could be someone else’s ‘no.’ That doesn’t make it wrong – it just makes it yours.”
The #1 Mistake New Investors Make
They catch “deal fever.”
They watch BiggerPockets, hear hype on TikTok, and suddenly they’re on Zillow offering on the first fixer-upper they see.
Don’t do that.
Slow down. Analyze the deal like a business owner, not a dreamer.
How to Run the Numbers Like an Underwriter
Every investor should practice underwriting deals – it’s one of the most critical skills you can develop.
Here’s what to look at:
- Purchase Price
- Rehab Budget
- After Repair Value (ARV)
- Expected Sale Price
- Holding Costs (loan interest, utilities, taxes, insurance)
- Closing & Realtor Fees
- Capital Gains Estimate (usually 15%)
- Time Frame (to complete + sell)
Plug that into a calculator or work with our team – we’ll run it with you.
Practice With Real Deals (Before Making Real Offers)
At LFG Lending, we recommend that new investors practice running deals before submitting offers.
Where? Use platforms like:
- InvestorLift (national wholesale deals)
- Facebook wholesaler groups
- Local off-market lists
- Your investor-friendly Realtor
We’ll walk you through your numbers, even if it’s just a dry run.
Real Client Story
A couple in Cincinnati-both high-earning doctors-ran a full rehab deal with our team. It was a six-month project with a projected net of $40,000.
Sounds great, right?
Their answer: “Not worth it.”
Their time was simply too valuable for that margin.
Another client? Took that same deal with joy – it fit their time availability and financial goals perfectly.
It’s not about the numbers alone – it’s about the context.
Final Thought: Don’t Build a Business You Don’t Want
Flipping real estate can be wildly profitable.
It can also be time-consuming, stressful, and full of surprises.
Make sure you’re getting paid appropriately for your time and effort.
Whether your magic number is $10k or $60k per flip, your success will come down to:
- Running the numbers
- Practicing your underwriting
- Having a strong team
- And staying honest with yourself
Ready to practice analyzing a deal?
We’ll run the numbers with you — no commitment needed.
📞 Book a Deal Strategy Call with LFG Lending today.
✅ Quick Evaluation Questions:
Does this deal make sense with your lifestyle and time availability?
Is the estimated profit enough for the timeline involved?
How does profit per month compare to your income goals?
Are you comfortable with the risk, based on the rehab size and holding costs?
Are you factoring in surprise costs (10-15% buffer)?