Calculate Precisely How Long You Will Hold a Flip

January 29, 2025 • Estimated Reading Time: 2 minutes

Yep, there's a formula for this. Here we go:

First, you're going to hold it for a minimum of 90 days due to the FHA "90-day Flip Rule." If it goes under contract on day 91, it's likely to take an additional 30 days to close, so count on a minimum of 120 days. You could sell it more quickly to a cash buyer or conventional borrower, but this happens less than half the time so you should not create a business model expecting to sell it more quickly.

Here are the components of your holding time in a flip:

  • Permitting time - How long it will take for the local municipality to approve the work you plan.

  • Construction / remodeling time - How long it will take to do the work. Your contractor will tell you, or you can calculated this based on spending a certain amount of money each day on average (think $1500 a day to start. Click here for more on this).

  • Delays - This allows for bad weather and sorry contractor excuses.

  • Marketing time - This should be the "average days on market" for your local market and price range.

Add all of those and if they are less than 120, make it 120. Otherwise use your calculated number.

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