One of the first questions every new house flipper asks is: how much does it actually cost to flip a house? The honest answer is — more than most beginners expect. But when you know all the costs upfront, you can plan for them and protect your profit on every deal.

This guide breaks down every single cost involved in a house flip, what to budget for each one, and how to calculate your total expenses before making an offer.

The 6 Major Cost Categories in a House Flip

Every house flip has six categories of costs. Missing any one of them can turn a profitable deal into a loss.

1. Purchase Price

The purchase price is the biggest number, and everything else is calculated around it. For a flip to be profitable, your purchase price must be low enough to absorb all other costs and still leave a profit. Most experienced flippers use the 70% rule to determine their maximum offer:

Maximum Offer = (ARV × 70%) − Repair Costs

If the After Repair Value (ARV) of a home is $250,000 and repairs are $35,000, your maximum offer should be around $140,000.

2. Repair and Renovation Costs

Repair costs vary widely depending on the condition of the property and your target finish level. Here are typical ranges for common renovation items:

• Full kitchen remodel: $15,000 – $45,000
• Bathroom remodel (per bathroom): $5,000 – $15,000
• New roof: $8,000 – $18,000
• HVAC replacement: $5,000 – $12,000
• Flooring (per 1,000 sqft): $3,000 – $8,000
• Electrical updates: $3,000 – $10,000
• Plumbing repairs: $2,000 – $8,000
• Interior paint (full home): $2,500 – $5,000
• Landscaping and curb appeal: $1,500 – $5,000

Light cosmetic flip (paint, flooring, fixtures): $15,000 – $30,000
Mid-level renovation (kitchen, baths, flooring): $40,000 – $70,000
Heavy gut rehab (structural, systems, full interior): $80,000 – $150,000+

Always get a detailed quote from a licensed contractor before finalizing your numbers. Never estimate repairs yourself on a flip — unexpected costs are the #1 reason deals fail.

3. Holding Costs

Holding costs are the ongoing expenses you pay every month while you own the property. The longer your flip takes, the more these eat into profit.

• Hard money loan interest: 8–15% annually (most flippers use hard money). On a $150,000 loan at 12%, that is $1,500/month.
• Property taxes: Varies by location, typically $200 – $600/month
• Homeowner’s insurance: $100 – $200/month
• Utilities (electricity, water, gas): $150 – $300/month

For a 4-month flip with a $150,000 hard money loan at 12%:

• Loan interest: $6,000
• Taxes + insurance + utilities: ~$2,000
• Total holding costs: ~$8,000

Flips that take 6–9 months can accumulate $15,000–$25,000 in holding costs alone.

4. Buying Closing Costs

When you purchase the property, you will pay closing costs. For an investment property, these typically include:

• Title search and title insurance: $1,000 – $2,500
• Attorney or escrow fees: $500 – $1,500
• Hard money loan origination fee: 1–3 points (1–3% of loan amount)
• Recording fees, taxes, misc: $500 – $1,000

Budget 2–4% of the purchase price for buying closing costs.

5. Selling Closing Costs and Agent Commission

When you sell the flipped home, you will pay:

• Real estate agent commissions: 5–6% of the sale price (both sides if using agents)
• Seller closing costs: 1–2% of sale price
• Staging and photography: $500 – $2,000

On a $250,000 ARV:

• Agent commissions at 5.5%: $13,750
• Closing costs at 1.5%: $3,750
• Total selling costs: ~$17,500

6. Contingency Buffer

Every experienced flipper builds in a 10% contingency on top of repair costs. Surprises happen — hidden water damage, code violations, permit delays. If you budget $50,000 for repairs, add $5,000 contingency. It is not pessimism — it is smart math.

Full Example: Total Cost to Flip a $250,000 ARV Home

• Purchase price: $130,000
• Repair costs: $45,000
• Contingency (10%): $4,500
• Holding costs (4 months): $8,000
• Buying closing costs: $4,500
• Selling closing costs + agent: $17,500
• Total costs: $209,500
• Net profit: $250,000 − $209,500 = $40,500

Calculate Your Exact Flip Costs

Key Takeaways

• A typical house flip has 6 cost categories: purchase price, repairs, holding costs, buying closing costs, selling costs, and contingency.
• Holding costs alone can cost $2,000–$4,000+ per month — speed matters on a flip.
• Always add a 10% contingency on top of your repair estimate.
• Agent commissions and selling costs can total $15,000–$20,000 on a mid-range flip.
• Use the 70% rule to set your maximum purchase price before running full numbers.

The investors who make consistent money flipping houses are the ones who know their numbers cold. Use the calculator above to model your next deal before making any offer.