Flip vs. Rent Calculator

Finished the rehab and not sure whether to sell or keep it? Run both exits on the same deal: profit from selling now, or cash flow plus equity from refinancing and holding.

How the comparison works

• Flip profit = after-repair value minus selling costs minus your all-in cost.
• Keep gain = cash back at refinance + cash flow over the hold + net proceeds when you sell at the end (value grown at your appreciation rate, minus selling costs and the remaining loan balance) − the cash you put in.
• Both exits start from the same purchase, rehab and short-term loan, so the difference is the exit, not the deal.

Worked example

Using the example deal ($150,000 purchase, $50,000 rehab, $275,000 ARV), selling now with 8% selling costs leaves about $33,250 of profit on $49,750 of cash. Keeping it with a 75% refinance at 7.5%, $2,400 rent and 3% yearly appreciation, then selling after five years, produces a total gain of about $89,575: roughly $9,050 of cash flow plus about $98,150 of net sale proceeds, minus the $17,625 left in the deal after the refinance.

Keeping usually wins on total dollars and flipping wins on speed and cash recycled into the next deal. These figures are example assumptions for discussion purposes only, not a Ternus quote or a commitment to lend. Any loan is subject to underwriting, valuation and final approval.

Flip or rent questions

Does the comparison include taxes on the sale?

No. Income and capital-gains taxes depend on your situation and can change the answer, so review both exits with your tax professional.

What if I can’t refinance enough to get my cash out?

Then more cash stays in the property and your return on it falls. Try a lower refinance loan-to-value to see how much that changes the result.

Ternus lends on both exits: fix-and-flip and bridge loans to buy and renovate, and DSCR rental loans to refinance and hold. Price your deal in the Loan Sizer or run the BRRRR calculator.