House Flipping Cost Estimator

What Does It Really Cost to Flip a House?

Most first-time flippers dramatically underestimate the full cost of flipping a house. The purchase price is just the beginning. By the time you add rehab, financing, holding costs, and selling costs, the total investment often runs 50–80% higher than the purchase price alone.

Here's a rough breakdown of how costs typically divide on a mid-market flip:

• Acquisition (purchase + closing): 55–65% of total cost
• Rehab: 20–30% of total cost
• Carrying costs: 5–10% of total cost
• Selling costs: 7–10% of total cost

The Biggest Cost Mistakes Flippers Make

Underestimating rehab. Scopes change. Hidden damage appears. Contractors find issues behind walls. Always add a 10–15% contingency to your rehab estimate — this is not optional.

Forgetting holding costs. Every month you own the property costs money: loan interest, taxes, insurance, and utilities. At $2,000–$3,000/month in holding costs, a 6-month flip costs $12,000–$18,000 just to hold before you sell. Every delay eats your margin.

Miscalculating selling costs. Agent commissions alone run 5–6% of the sale price — on a $260K ARV, that's $13,000–$15,600. Add closing costs, transfer taxes, staging, and photos, and selling can easily cost 8–10% of ARV.

How to Estimate Rehab Costs

The most accurate method is a contractor walkthrough before making an offer. But for quick deal analysis, experienced flippers use these rough rules:

• Light cosmetic: $15–$25/sqft (paint, flooring, fixtures)
• Medium renovation: $30–$50/sqft (kitchen, baths, flooring, paint)
• Heavy renovation: $60–$100/sqft (structural, all systems, full gut)

Always add 10–15% contingency. If you're new to estimating, add 20%.

Frequently Asked Questions

How much does it cost to flip a house?

Most house flips cost 50–80% more than the purchase price once you add rehab, financing, holding, and selling costs. On a typical $150K purchase with a $260K ARV, all-in costs often land between $200K and $230K. The four buckets are acquisition (55–65%), rehab (20–30%), carrying costs (5–10%), and selling costs (7–10%). The house flipping profit calculator shows what is left after costs.

How do I estimate the cost of flipping a house?

Start with the purchase price, then add rehab using a per-square-foot rule ($15–$25 light, $30–$50 medium, $60–$100 heavy), a 10–15% rehab contingency, monthly carrying costs across your hold period, and 8–10% of ARV for selling costs. During renovation season, a contractor walkthrough before you make an offer gives the most accurate rehab number. Hard money loan costs add to your carrying total.

What is a typical house flipping cost breakdown?

A typical house flipping cost breakdown has four parts: acquisition (purchase plus 2–3% closing) at 55–65%, rehab plus contingency at 20–30%, carrying costs like loan interest, taxes, insurance and utilities at 5–10%, and selling costs including 5–6% agent commissions at 7–10%. The 70% rule helps you set a safe purchase price against these costs.

What profit margin should I target on a flip?

Most experienced flippers target a minimum 15–20% profit margin (profit / ARV). Below 15% leaves too little cushion for overruns. A deal with a 20%+ margin can absorb most problems and still profit. The 70% rule (buy at 70% of ARV minus rehab) is designed to produce roughly this margin.

How long does a house flip take?

The average fix-and-flip takes 4–6 months from purchase to close of sale — 1–2 months for rehab, 1–2 months on market, 30–45 days to close. Experienced flippers with reliable contractor teams often complete deals in 3–4 months. First-time flippers should budget 6–8 months.

Should I use an agent to sell my flip?

In most markets, yes. A good agent with local knowledge will net you more than the commission costs — through pricing strategy, negotiation, and market exposure. Selling FSBO to save the commission often results in a longer days-on-market and a lower sale price.

What's the difference between this and the FlipIQ deal analyzer?

This estimator gives you a full cost breakdown with granular rehab line items. FlipIQ's deal analyzer adds deal score (A–D grade), MAO calculation, sensitivity analysis, BRRRR comparison, and a lender-ready PDF you can send directly to a hard money lender — all updating in real time as you type.