How much does it cost to flip a house?

What goes into a flip's total cost

A flip is a house you buy, renovate and sell for a profit. The after-repair value is the price the house should sell for once the work is done, and our figure for it is the estimated ARV.

The total cost adds up 5 lines, and the estimated ARV has to cover all of them.

• Purchase: you pay the price plus closing costs of 2% to 5%.
• Renovation: the condition of the house sets the scope, and a contingency covers surprises.
• Loan: a hard-money lender charges interest and points on what it lends.
• Holding: property tax, insurance and utilities run for every month you own the house.
• Selling: the agent commission comes out of the sale price.

A real example from a Homesage.ai report

We pulled the report figures for a house in Fort Wayne, Indiana. It has a condition score of Outdated and a list price of $120,000.

The list price covers only 51% of what this flip costs. Renovation adds an estimated $91,963. The last $24,179 is the report's allowance for the loan, the months you hold the house and the sale.

After repairs, the house has an estimated ARV of $192,750. The all-in cost runs $43,392 above that, so buying at the list price loses money.

On this house, the list price is about half of what the flip costs you.

The 70% rule shows the same gap. BiggerPockets' guide to house flipping costs sets the maximum purchase price at 70% of the after-repair value minus repair costs. Here that is $134,925 minus $91,963, or $42,962. The seller asks $77,038 more than that.

Estimating the cost to flip a house

1. Start with the estimated ARV. Recent sales of renovated homes nearby set the ceiling for every other line.
2. Price the work for this house's condition, plus a contingency. See our guide on whether AI can calculate renovation costs.
3. Add buying and loan costs. Freddie Mac puts closing costs at 2% to 5% of the purchase price. Hard-money loans run about 9% to 12% interest plus 1 to 3 points, according to Easy Street Capital.
4. Add holding costs for every month you own the house. Count loan interest, property tax, insurance and utilities. The typical Q2 2026 flip took 161 days from purchase to resale.
5. Add selling costs, then compare the total with the estimated ARV. Agent commissions average 5.46% nationally and 5.57% in Indiana, according to Real Estate Witch.

What changes the total cost of a flip

The purchase price is the biggest line and the one you negotiate. In Q2 2026, ATTOM found homes bought for $100,000 to $200,000 earned typical gross margins of 28%. Homes bought for $50,000 or less posted a typical loss of $15,000.

Renovation scope comes next. ATTOM notes that flipping veterans put rehab and other expenses at 20% to 33% of the after-repair value. On our Fort Wayne example, renovation and the other costs reach 60% of the estimated ARV.

Time adds cost to every line. At 12% interest, each extra month on a $100,000 loan adds $1,000. Margins are also shrinking, with ATTOM's typical gross margin down to 21.5% from 27.6% a year earlier.

Common flip cost mistakes to avoid

• Budgeting from the list price: On this house, the $120,000 list price is 51% of the $236,142 total. Price every line before you make an offer.
• Leaving out loan, holding and selling costs: Those lines add $24,179 on this house, about 10% of the total. Without them, the deal looks $24,179 better than it is.
• Underestimating the time: The typical Q2 2026 flip took 161 days from purchase to resale. At 12% interest, each extra month on a $100,000 loan adds $1,000.
• Treating the renovation estimate as a bid: The estimated $91,963 is priced from the house's condition, which is read from property photos. Photos do not show wiring or plumbing inside the walls, so get contractor bids before you close.

Estimated values. Not investment advice. Data as of 2026-10-03.

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