How to Calculate Your Hold Time on a Flip

How to Calculate Your Hold Time on a Flip

It’s not fool-proof because we are talking about the future and who knows what will really happen? But we can get enough of an idea to help us create pro forma financials for any project. 

Your hold time is the sum of two components:

Renovation time. This begins the day after you close on the purchase and continues until the day you list it for sale. Renovation time includes permitting and that can be an issue.

Time on market. Your broker can/should provide for you the average days on market for properties like yours in your immediate area. Days on market are the number of days from listing to contract. You will want to add another 45 days to go from contract date to closing. 

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