House Flip Budget Breakdown: Where Your Money Actually Goes in 2026
Complete breakdown of flip costs from purchase to sale. Learn the hidden expenses most investors miss, typical percentages for each category, and how to avoid budget overruns.
Most new flippers underestimate costs by 20-30%, turning profitable deals into break-even nightmares. This guide breaks down where your money actually goes - and the hidden expenses that derail budgets.
The 8 Cost Categories
Typical $300k Flip Budget
- 1. Purchase Price 53%
- 2. Rehab Costs 17%
- 3. Financing Costs 4%
- 4. Buying Closing Costs 1.6%
- 5. Holding Costs 3%
- 6. Selling Costs 8%
- 7. Contingency 2.7%
- 8. Misc 1%
- Target Net Profit ~10%
The Big 3 Hidden Costs
1. Holding Costs
Taxes, insurance, utilities, and loan interest. A 6-month flip costs $9,000+ just to hold. Delays double this cost.
2. Selling Costs
Agent commissions (6%), closing costs, staging, concessions. Budget 8-10% of the FINAL sale price.
3. Lender Fees
Hard money isn't just interest. Points (2-4%), origination fees, appraisal, and draw fees add up fast.
Rehab Budget Rules of Thumb
Cosmetic
$25/sqft
Paint, floors, fixtures
Standard
$45/sqft
+ Kitchen & baths
Full Gut
$75+/sqft
+ Roof, HVAC, windows
Always Add a Contingency
Budget 15-20% of your rehab costs for surprises. You WILL find them (termites, mold, bad wiring).
Track Every Penny
Don't rely on back-of-napkin math. Use a professional deal analyzer that includes all these line items automatically.
About the Author
Flip Analyzer Pro Team
Real estate investors and software engineers helping flippers, wholesalers, and BRRRR investors analyze deals faster and more accurately.
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