Fix and Flip Calculator for Tennessee

The 70 percent rule says the most you should pay for a flip is 70 percent of the after repair value (ARV), minus the repairs. On a house that will sell for $400,000 after $40,000 of work, that's $400,000 times 0.70, or $280,000, minus $40,000, for a maximum offer of $240,000.

The 30 percent you leave on the table has to cover your buying and selling costs, your holding costs, your loan and your profit. The rule doesn't know any of those numbers. That's why the calculator runs them all, and why you can change the 70 to 65 or 75 and watch the maximum offer move.

Is the 70 percent rule too loose or too tight in Middle Tennessee?

It can be either one, depending on the price of the house. The 30 percent cushion is a share of the ARV, but a lot of flip costs don't shrink with the price.

The price points in the counties I work are far apart. These are Realtor.com's October 2026 figures for homes listed for sale, so they're asking prices, not sales.

Source: Realtor.com Economic Research, county inventory data, October 2026.

When the rule is too loose

On a lower-priced house, the 30 percent slice is smaller in dollars, but your title fees, insurance, utilities and months of interest don't get smaller with it. A long hold makes it worse. The days on market above only count the time a listing sat for sale, so your hold also has to cover the repairs and the buyer's closing period. Stack a hard money loan's interest and points on top, and the rule can tell you yes on a deal the full numbers say no to.

When the rule is too tight

On a higher-priced house, 30 percent of the ARV is a big number. At Williamson County's October median asking price it's over $340,000. The rule can screen out a house that still makes money once you run the real costs.

The risk scales up too. If you miss the ARV by 5 percent on a $1,157,200 resale, that's $57,860 gone. The rule can't tell you whether your ARV is right. Only the sold comparables can.

ARV calculator: how to calculate after repair value

ARV, or after repair value, is what the house should sell for once the work is done. It's the first field in the calculator above, and the maximum offer, the profit and the stress test all run off it. You get it from homes nearby that are similar in size, age and finish to what you'll have after the rehab, and that actually sold recently. Asking prices and online estimates aren't sales.

Then adjust for the differences: square footage, bedrooms and baths, garage, lot and condition. If the best comparables sold before a price shift in the neighborhood, weight the newer sales more.

In Spring Hill, check the county first. Spring Hill sits in both Williamson and Maury counties, and the city's 2026 tax ordinance sets one city rate for both sides. Comps should come from the same side of the county line as your house, and your property tax holding cost depends on it too. My Spring Hill county guide shows how to tell which side a house is on.

How much should you budget for repairs on a flip?

Budget the repairs from a written scope and contractor bids on that specific house, then add a contingency line for what turns up once the work starts. For the size of that line, HUD's rule for its Standard 203(k) rehab loans is a published benchmark: 10 to 20 percent of the repair cost on a house 30 years or older.

From my own experience, the contractor and the team you work with matter as much as the house, because your numbers have to be right before you buy. Leave enough room for a buffer when you find something else, when permits take longer than you planned, and for the holding costs that run the whole time. I've learned that the hard way, and I think every fix-and-flipper has.

Walk the house and write the scope before you offer

Go room by room, then check the roof, the foundation, the HVAC, the water heater, the electrical panel and the plumbing. Write down everything you'll repair or replace and put a dollar figure beside each line. That list is your scope, and it's what you hand every contractor so the bids cover the same work.

Write it before you make the offer, or during your inspection period at the latest. The calculator's repair budget comes straight off that list, and the 70 percent rule subtracts it from your maximum offer. Franklin's building department also asks permit applicants to be clear and precise about the scope of work, so the same list carries into your permits.

Get bids from licensed contractors

Get more than one bid on the same scope. In Tennessee, a contractor who bids or contracts directly with you on a project of $25,000 or more needs a license from the state Board for Licensing Contractors. A home improvement license covers residential remodeling jobs from $3,000 to $24,999, but only in the counties that adopted that law.

As of November 2026, the Board lists nine of them: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby. So in Nashville the home improvement license applies. Williamson and Maury aren't on the list, so in Franklin, Thompson's Station, Spring Hill and Columbia the state's licensing line is $25,000. You can look up any contractor on the Board's Verify a License page at tn.gov.

Find out which permits the work needs

Franklin, Thompson's Station, Spring Hill, Columbia and Metro Nashville each run their own building permits, and Williamson County handles the unincorporated parts of the county, so check which one the address falls in. These are each office's published rules as of November 2026.

Sources: City of Franklin, Town of Thompson's Station, City of Spring Hill, City of Columbia, Metro Nashville Codes and Williamson County Building Codes websites, November 2026.

Put permit fees in your repair budget. Then count the weeks for permits and inspections in the calculator's months field, because each extra month adds a month of holding costs and, with a loan, a month of interest. Franklin says it processes residential permit applications in 7 working days or less, and inspections follow as the work goes.

Add a contingency line

Once walls and floors are open, you can find work the scope missed. HUD's contingency reserve rule for Standard 203(k) rehab loans is a published benchmark for how much cushion to carry. On a house 30 years or older, HUD requires a reserve of 10 to 20 percent of the repair costs, and at least 15 percent when the utilities aren't working. On a house under 30 years old, the reserve is optional up to 20 percent unless there's termite damage, which brings back the 10 percent minimum.

HUD wrote that rule for its own loan program, and it's still a useful yardstick for a flip. The calculator doesn't have a separate contingency field, so add yours to the repair budget. That lowers the 70 percent rule's maximum offer too, so the cushion is built into what you pay. The stress test under the results already runs your repairs 20 percent over, the top of HUD's range.

What does the calculator count?

It counts every cost from the day you buy to the day you sell. You can change any line.

The loan amount is your loan-to-cost percentage times the purchase price plus repairs. If your lender sends repair money in draws, your real interest runs a little lower than the calculator shows.

Who pays the transfer tax when you flip a house in Tennessee?

The buyer does, by law, unless the contract says otherwise. Tennessee's realty transfer tax is $0.37 per $100 of the price or the property's value, whichever is greater, and Tenn. Code Ann. 67-4-409(a) puts it on the grantee, the buyer. That means you pay it when you buy the flip, and your buyer pays it when you sell. The standard Tennessee REALTORS purchase agreement also puts it on the buyer.

On a $235,000 purchase, the transfer tax is $869.50. The rate is set by the state, so it's the same in Williamson, Maury and Davidson counties as of November 2026. My Tennessee closing costs guide covers the rest of who pays what.

Is there a mortgage tax on a flip loan in Tennessee?

Yes, if your loan is recorded against the house. Tennessee charges $0.115 per $100 of the loan amount, and the first $2,000 isn't taxed (Tenn. Code Ann. 67-4-409(b)). The borrower pays it. On a $233,750 loan, that's $266.51. An all-cash purchase has no mortgage tax.

Tennessee transfer and mortgage tax figures are the state rates in Tenn. Code Ann. 67-4-409 as of November 2026 and are for planning only. Your actual closing costs depend on your contract, title company and lender, and income tax on a flip's profit depends on your situation. I am a licensed Realtor (TREC 369038), not a tax professional. Confirm with a CPA and your title company before you rely on a number.

What's the difference between ROI and cash-on-cash return on a flip?

ROI divides your profit by the total project cost. Cash-on-cash divides your profit by the cash you actually put in. With a loan, you put in less cash, so cash-on-cash goes up even though the loan costs you interest and points and lowers your profit.

Both numbers are for one project. They aren't annualized, so a flip that takes eight months and a flip that takes four can show the same ROI. Your profit is before income tax, so talk to a tax professional about what you'd owe.

A worked example

The calculator opens with made-up numbers: a $400,000 ARV, a $235,000 purchase, $40,000 of repairs, $3,000 of buy-side closing costs, five months at $1,200 a month to hold, 5 percent commission and 1.5 percent other selling costs. None of it is a real house or a quote.

The loan terms are example inputs, not a quote or an average. Your lender's term sheet has the real ones.

Rates, APRs, buydowns and builder incentives on this page are published by the builder or lender named, were read on the date shown, and can change or end without notice. They are not an offer of credit from me or eXp Realty, and I am a licensed Realtor (TREC 369038), not a mortgage lender. Confirm the current terms, APR, eligibility and any lender requirement in writing with the builder or lender before you rely on them.

The purchase comes in $5,000 under the 70 percent maximum, and the all-cash version still makes $62,431 if repairs run 20 percent over and the house sells for 5 percent less. Change the purchase price to $300,000 and leave the ARV at $400,000, and you're $60,000 over the maximum offer. Run it and see what's left.

Should you sell the flip or keep it as a rental?

Sell it if the calculator shows the profit you bought it for. Keep it only if the rent covers the loan payment, property tax, insurance, HOA dues, repairs and the months it sits empty, with room left over, and you can refinance out of the short-term loan. Keeping it changes your monthly cash, your loan and when the IRS treats the gain as long-term.

Rent versus holding cost

While you're flipping, the calculator's monthly holding cost is money going out with nothing coming in. Keep the house and rent starts coming in against those costs, plus the payment on the new loan, repairs and the months it sits empty between tenants. Your lease decides who pays the utilities.

Use what similar homes nearby actually rent for. My sell or rent calculator runs that monthly math, with vacancy, management, maintenance, insurance, taxes and HOA dues each on their own line.

Refinancing out of a short-term loan

An interest-only flip loan is built for a short hold, so keeping the house means refinancing into a longer-term mortgage. The new loan depends on what the house appraises for and your lender's limits, so get a quote on a rental-property loan before you decide to keep it.

If you want cash out, timing matters. For loans Fannie Mae buys, its Selling Guide requires at least one borrower to have been on title for at least six months before a cash-out refinance funds, with a few exceptions, as of its December 10, 2025 update. Ask your lender which rules apply to your loan before you count on pulling your cash back out.

Capital gains timing

The IRS says a capital asset you hold more than one year produces a long-term gain or loss when you sell, and one you hold one year or less produces a short-term one. Net short-term gains are taxed as ordinary income. You start counting the day after you bought the house, and the day you sell counts.

The worked example above holds the house five months. Keep it as a rental and a later sale can land past the one-year mark. The IRS also says property you hold mainly for sale to customers in your trade or business isn't a capital asset. If flipping is your business, your profit may be ordinary income however long you hold the house.

Talk to a tax professional about where your flip lands before you decide. My Tennessee capital gains guide covers rentals, depreciation and 1031 exchanges.

Tax figures on this page are the federal rules as published for 2026 and are for planning only. I am a licensed Realtor (TREC 369038), not a tax professional or a lender. Confirm your own situation with a CPA, and any borrowing limit with your lender, before you rely on a number.

Common questions

What is the 70% rule in real estate?

The 70 percent rule says the most you should pay for a flip is 70 percent of the after repair value, minus the repairs. On a house that will sell for $400,000 after $40,000 of work, the maximum offer is $240,000. It's a rule of thumb. It doesn't count your loan, your hold time or your selling costs.

How do you calculate ARV on a flip?

Find homes nearby that are similar in size, age and finish to what you'll have after the rehab and that actually sold recently. Adjust for differences in square footage, bedrooms and baths, garage, lot and condition. Asking prices and online estimates aren't sales.

Who pays the transfer tax in Tennessee?

The buyer, by law, unless the contract says otherwise. The rate is $0.37 per $100 of the price or the property's value, whichever is greater, under Tenn. Code Ann. 67-4-409(a). On a flip, you pay it when you buy and your buyer pays it when you sell.

Is there a mortgage tax on a flip loan in Tennessee?

Yes, if the loan is recorded against the house. Tennessee charges $0.115 per $100 of the loan, the first $2,000 isn't taxed, and the borrower pays it. On a $233,750 loan, that's $266.51.

Does the 70 percent rule work in Williamson and Maury County?

It's a starting screen in both, but the price points are far apart. In October 2026, Realtor.com put the median asking price at $1,157,200 in Williamson County and $489,900 in Maury County. On a lower-priced house the rule can be too loose, because fixed costs don't shrink with the price. On a higher-priced house it can be too tight. Run the full numbers either way.

What's the difference between ROI and cash-on-cash return?

ROI divides your profit by the total project cost. Cash-on-cash divides your profit by the cash you actually put in, so a loan raises it even though the loan lowers your profit.

How much should you budget for repairs on a flip?

Budget from a written scope and contractor bids on that specific house, then add a contingency line. For a benchmark, HUD's rule for its Standard 203(k) rehab loans requires a reserve of 10 to 20 percent of the repair costs on a house 30 years or older. Add your contingency to the calculator's repair budget so it lowers your maximum offer too.

Should you sell a flip or keep it as a rental?

Keep it only if the rent covers the loan payment, property tax, insurance, HOA dues, repairs and the months it sits empty, with room left over, and you can refinance out of the short-term loan. The IRS treats a capital asset held more than one year as long-term and one held one year or less as short-term. Talk to a tax professional about where your flip lands before you decide.