Fix & Flip
Fix-and-Flip Budget Template: The Numbers That Keep You Profitable
Published by Pinnacle Funding Network | Updated March 2026
Key Takeaway
The most common reason fix-and-flip projects fail is bad numbers, not bad properties. A complete flip budget must account for acquisition costs, renovation costs, holding costs (interest, taxes, insurance, utilities), and selling costs (agent commissions, closing costs). Missing any category can turn a profitable flip into a loss.
Most failed flips don't fail because the investor chose a bad property. They fail because the investor ran bad numbers.
Underestimating rehab costs, forgetting holding costs, or miscalculating the ARV by even 5% can turn a profitable deal into a loss. The numbers don't lie - but you have to account for all of them.
This post gives you a complete fix-and-flip budget framework with the line items most investors miss.
The Complete Fix-and-Flip Budget
Every flip has four cost categories: acquisition, rehab, holding, and disposition. Most investors focus on the first two and underestimate the last two.
Category 1: Acquisition Costs
```
Purchase Price: $___________
Down Payment (10-15% of purchase): $___________
Origination Points (1-3%): $___________
Closing Costs (buyer side): $___________
- Title insurance: $___________
- Recording fees: $___________
- Attorney/escrow fees: $___________
- Inspections: $___________
- Appraisal: $___________
Total Acquisition Cost: $___________
```
On a $300K purchase with hard money financing (85% LTC), your acquisition cash outlay includes the 15% down payment ($45K), 2 points ($5,100), and roughly $3,000-5,000 in closing costs. Total cash at closing: approximately $53,000-55,000.
Category 2: Rehab Costs
```
Demolition/Haul-off: $___________
Foundation/Structural: $___________
Roof: $___________
HVAC: $___________
Plumbing: $___________
Electrical: $___________
Framing/Drywall: $___________
Insulation: $___________
Windows/Doors: $___________
Kitchen (cabinets, counters,
appliances, backsplash): $___________
Bathrooms: $___________
Flooring: $___________
Paint (interior): $___________
Paint (exterior): $___________
Landscaping/Curb Appeal: $___________
Garage: $___________
Permits: $___________
Dumpster/Cleanup: $___________
Miscellaneous: $___________
Contingency (10-15%): $___________
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Total Rehab Budget: $___________
```
The contingency line is not optional. It's the line that separates profitable flippers from the ones who lose money on their first deal and never do a second. Add 10% on straightforward cosmetic rehabs, 15% on properties with potential hidden issues.
Category 3: Holding Costs
This is the category most new flippers underestimate. Every month you hold the property, these costs accumulate:
```
Monthly Holding Costs:
Loan interest (I/O): $___________
Property taxes (monthly prorate): $___________
Insurance: $___________
Utilities: $___________
HOA (if applicable): $___________
Lawn care/maintenance: $___________
Monthly total: $___________
Projected hold time: ___ months
Total Holding Costs: $___________
```
On a $300K hard money loan at 11%, your monthly interest alone is $2,750. Add taxes ($300), insurance ($150), utilities ($200), and lawn care ($100), and you're spending $3,500/month just to own the property. Over a 6-month flip, that's $21,000 in holding costs - money that comes directly out of your profit.
This is why speed matters in flipping. Every month of delay is another $3,000+ eaten.
Category 4: Disposition (Selling) Costs
```
Selling Costs:
Agent commission (5-6% of sale): $___________
Seller closing costs: $___________
Transfer tax/stamps: $___________
Title insurance (seller): $___________
Staging (if applicable): $___________
Photography: $___________
Concessions/credits to buyer: $___________
Total Disposition Costs: $___________
```
On a $420K sale, a 6% commission is $25,200. Add $3,000-5,000 in other closing costs and potential buyer concessions. Total selling costs: $28,000-30,000.
This is often the biggest surprise for first-time flippers. You think your profit is the difference between purchase price and sale price, minus rehab. It's actually that number minus $30K+ in selling costs.
The 70% Rule (And Why It Still Works)
The 70% rule is a quick-filter formula: you should pay no more than 70% of the After Repair Value, minus rehab costs.
Maximum Purchase Price = (ARV × 70%) - Rehab Costs
Example: ARV is $400K. Rehab is $60K.
Max purchase = ($400K × 0.70) - $60K = $220K.
This rule builds in margin for holding costs, selling costs, and profit. If you follow it, you'll have roughly 30% of ARV to cover those expenses - and what's left is your profit.
The rule isn't perfect. In expensive markets you might adjust to 75%. In markets with long holding times, you might need 65%. But it's the right starting point for evaluating whether a deal is worth deeper analysis.
Full Deal Example
```
PROPERTY: 3BR/2BA SFR, Fort Worth, TX
ACQUISITION:
Purchase Price: $240,000
Hard Money Loan (85%): $204,000
Down Payment (15%): $36,000
Points (2%): $4,080
Closing Costs: $3,500
Cash at Acquisition: $43,580
REHAB:
Kitchen remodel: $18,000
Both bathrooms: $12,000
Flooring (whole house): $8,000
Interior paint: $4,500
Exterior paint: $3,500
Landscaping: $3,000
HVAC service: $1,500
Electrical updates: $2,500
Dumpster/cleanup: $1,500
Permits: $800
Contingency (12%): $6,600
Total Rehab: $61,900
Rehab financed (100%): $61,900
Rehab out of pocket
(fronting 1 draw): ~$15,000
HOLDING (6 months):
Interest ($204K + draws at 11%): $16,500
Taxes: $1,800
Insurance: $900
Utilities: $1,200
Total Holding: $20,400
DISPOSITION:
After Repair Value: $385,000
Agent Commission (6%): -$23,100
Closing Costs: -$4,000
Net Sale Proceeds: $357,900
PROFIT CALCULATION:
Net Sale Proceeds: $357,900
Less: Loan Payoff ($265,900): -$265,900
Less: Holding Costs: -$20,400
Less: Cash Invested ($43,580
+ $15,000 fronted): -$58,580
Less: Origination ($4,080): already in loan
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
GROSS PROFIT: $13,020
ROI on Cash Invested: 22.2%
Annualized ROI (6 months): 44.4%
70% RULE CHECK:
Max Purchase = ($385K × 0.70) - $61.9K = $207,600
Actual Purchase: $240,000
Over 70% rule by: $32,400
This deal is tight - profit depends on hitting
the ARV and controlling costs.
```
Three Rules for Staying Profitable
Rule 1: Know your ARV before you buy. Pull comps. Walk the neighborhood. Talk to agents. Your profit depends entirely on what the property sells for after rehab. Get this wrong and nothing else matters.
Rule 2: Add 15% to your rehab budget. Whatever your contractor quotes, add 15%. Hidden water damage, permit delays, supply chain surprises - something will cost more than expected. Budget for it now, not later.
Rule 3: Assume a longer hold time. If your contractor says 3 months, budget for 5. If the market says 30 days on market, budget for 60. Hope for the best, underwrite for the worst.
Financing Your Flip
We work with fix-and-flip lenders who finance up to 90% of the purchase and 100% of the rehab budget. Rates range from 9-12% depending on experience and deal quality, with closing timelines as fast as 7-14 days.
If your plan is BRRRR (flip into a rental and refinance), we structure the exit loan (DSCR) alongside the acquisition loan so there's no gap in your financing strategy.
James Loffredo, Principal
Pinnacle Funding Network
214-846-8602
james@pinnaclefundingnetwork.com
pinnaclefundingnetwork.com
Pinnacle Funding Network is a mortgage broker. PFN does not make loans or credit decisions. Loans are originated through PFN's lending partners. Rates, terms, and programs are subject to change. All loan applications are subject to credit review, property appraisal, and underwriting approval.