Slow Flip Calculator

A slow flip is a real estate strategy where you buy a house (often cash, or with a mortgage), then sell it via owner financing instead of for a traditional cash payoff. The buyer puts down a small down payment (typically 5-15%) and pays you monthly principal + interest for 10-30 years at an above-market rate (8-10%). You become the bank, collecting monthly cash flow and a large total profit over the term — or, if the buyer defaults, keeping their payments and the house.

Owner-finance buyers usually can't qualify for conventional mortgages: self-employed without documented income, recent immigrants, past credit issues, or rural areas where mortgage underwriters won't lend. They pay a premium (higher rate, sometimes higher price) for the access. The buyer pool is real and active, especially in working-class and rural markets.

Under a contract for deed (also called a land contract), the buyer doesn't get title until they pay off the note. If they default, you keep all payments made + the down payment, and you reclaim the house through forfeiture (faster than foreclosure). You can then sell it again. Under a deed-of-trust or mortgage structure, you go through foreclosure — slower but the same end result. Either way, defaults are not catastrophic; they're often profitable.

The A.I. analyzes the listing photos and description for condition signals (renovated, dated, as-is, needs work), then suggests a realistic sale price for an owner-finance buyer (typically 15-30% above your purchase + rehab cost). For rehab, it estimates needed work from listing photos and assigns dollar amounts to common items: kitchen update, bath remodel, roof, paint, etc. You can override every number in the calculator.

Owner financing is legal in all 50 states, but Dodd-Frank's SAFE Act limits non-licensed sellers to 3 owner-financed sales per year of residential property. If you scale beyond that, you'll need a licensed loan originator to write your notes. State laws vary on usury caps, balloon limits, and disclosure requirements. Consult a real estate attorney before your first deal.

Cash buy: You tie up your money in the house, but every dollar of the buyer's monthly payment is cash flow. Highest absolute monthly income, longest payback period. Financed buy ("wrap"): You only put down 10-25%, and your buyer's payment covers your mortgage plus a spread you keep. Much lower cash investment, smaller absolute cash flow, but cash-on-cash returns are often 25-40%+. Wraps carry due-on-sale risk — most lenders technically can call the loan, though it's rare.

Cheap-to-mid-priced homes in markets where conventional buyers are scarce: working-class suburbs, rural towns, blue-collar cities. Sweet spot is $40k-$200k purchase price. Luxury homes ($400k+) generally don't work — buyers in that price range can almost always get a conventional mortgage, so they won't pay your owner-finance premium. The A.I. tool flags luxury properties as poor fits.

A balloon means the buyer's monthly payment is calculated against a 30-year amortization, but the full remaining balance is due at year 5 (or 7, or 10 — your choice). At balloon time, the buyer either refinances with a conventional lender or you re-sell the note. Balloons let you take a big lump sum sooner rather than waiting 30 years for full payoff. The calculator models balloon profit when you set a balloon year.