Last updated: January 2026

Cost of Flipping a House

House flipping involves more costs than just the purchase price. This guide breaks down every expense you'll encounter so you can budget accurately and protect your profits.

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Four Categories of Flipping Costs

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1. Acquisition Costs

Purchase price plus closing costs to buy the property.

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2. Rehab Costs

Repairs, renovations, materials, and labor.

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3. Holding Costs

Monthly expenses while you own the property.

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4. Selling Costs

Commissions, closing costs, and fees when you sell.

Detailed Cost Breakdown

Acquisition Costs

Purchase price	Variable
Closing costs	1-3% of purchase
Inspection	$300-$600
Appraisal (if financed)	$400-$700
Title search & insurance	$1,000-$2,500

Rehab Costs (Per Square Foot)

Light cosmetic (paint, carpet, fixtures)	$15-25/sq ft
Medium (kitchen, baths, flooring)	$30-50/sq ft
Heavy (structural, HVAC, full gut)	$50-75+/sq ft
Contingency buffer	+10-20%

Example: 1,500 sq ft home, medium rehab at $40/sq ft = $60,000 + 15% contingency = $69,000 total rehab budget.

Monthly Holding Costs

Hard money loan payments (10-12% APR)	$800-$1,500
Property taxes (monthly portion)	$200-$600
Insurance	$100-$300
Utilities	$150-$350
Lawn/maintenance	$50-$150
Typical monthly total	$1,300-$2,900

A 5-month flip at $2,000/month = $10,000 in holding costs.

Selling Costs (% of Sale Price)

Agent commissions	5-6%
Closing costs	1-2%
Transfer taxes (varies by state)	0-2%
Buyer concessions/credits	0-3%
Total selling costs	8-10%

On a $250,000 sale, budget $20,000-$25,000 for selling costs.

Example Flip Cost Breakdown

1,500 sq ft home • $250,000 ARV • 5-month project

Costs Out

Purchase price$130,000
Acquisition costs (2%)$2,600
Rehab ($35/sq ft + 15%)$60,375
Holding (5 mo × $2,000)$10,000
Selling costs (9% of $250k)$22,500
Total costs$225,475

Profit Analysis

Sale price (ARV)$250,000
Total costs-$225,475
Net profit$24,525
ROI (on cash invested)12.7%

Frequently Asked Questions

How much does it cost to flip a house?

Total costs vary widely but typically include: purchase price (largest cost), rehab ($15-75 per sq ft), holding costs (2-5% of purchase price per year), and selling costs (8-10% of sale price). A typical flip might have $30,000-$60,000 in non-purchase costs.

What are holding costs in house flipping?

Holding costs are expenses you pay while owning the property: loan payments, property taxes, insurance, utilities, and maintenance. They typically run $1,000-$3,000 per month depending on the property and financing.

How much should I budget for rehab?

Light cosmetic rehab: $15-25 per sq ft. Medium rehab (new kitchen, bathrooms, flooring): $30-50 per sq ft. Heavy rehab (structural, full gut): $50-75+ per sq ft. Always add a 10-20% contingency.

What selling costs should I expect?

Selling costs total 8-10% of sale price: agent commissions (5-6%), closing costs (1-2%), title insurance, transfer taxes, and concessions. Budget 10% to be safe. Try FlipMantis free.

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