Foundations
How Much Money Do You Need to Flip a House?
The real out-of-pocket number is bigger than the down payment. Here's every dollar a flip actually needs.
June 15, 2026 · 6 min read
Most beginners need 10–25% of the purchase price in cash plus a reserve for overruns. Using a hard money loan, expect to bring roughly $30,000–$60,000 out of pocket on a typical first flip to cover the down payment, lender points, closing costs, and a few months of holding costs.
The short answer
There's no single number — it depends on the purchase price, how much rehab the property needs, and how you finance it. But for a typical beginner flip funded with hard money, plan on $30,000–$60,000 of your own cash in the deal. All-cash flippers need far more: the full purchase price plus rehab plus holding costs.
Where the money goes
| Cost | Typical amount | Paid when |
|---|---|---|
| Down payment | 10–25% of purchase | At closing |
| Lender points + fees | 2–7% of loan | At closing |
| Closing costs (buy) | 2–5% of purchase | At closing |
| Renovation | $20–$60+ / sq ft | Throughout rehab |
| Holding costs | $1,000–$3,000 / mo | Every month you own it |
| Selling costs | 6–8% of sale price | At sale |
Hard money typically lends against the after-repair value and may finance much of the rehab, which is why the cash needed is far less than the property price — but you still cover the down payment, points, closing, and carrying costs out of pocket.
Don't forget the reserve
The number that sinks beginners isn't the planned cost — it's the surprise. Keep a contingency reserve of at least 10–15% of your rehab budget for hidden damage, plus enough to cover several extra months of holding costs if the sale takes longer than expected. A deal that's perfectly funded on paper but has zero cushion is a fragile deal.
Lower-capital paths
- Partnerships — bring the deal and the sweat; a partner brings the cash, you split profit.
- Private money — an individual lender funds the deal, often on more flexible terms than a bank.
- Wholesaling first — assign a few contracts to build capital before your first full flip.
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Get started freeFrequently asked questions
- Can you flip a house with $20,000?
- Possibly, with hard money or a partner covering most of the deal — $20,000 might cover a down payment, points, and a few months of holding costs on a lower-priced property. It's tight; a larger reserve is safer for a first flip.
- Do you need good credit to flip a house?
- Not necessarily. Hard money lenders care most about the deal's after-repair value and your down payment, and will often work with weaker credit. Conventional financing is cheaper but requires strong credit and a habitable property.
- How much cash should I keep in reserve?
- Aim for at least 10–15% of your rehab budget plus several months of holding costs. Reserves cover hidden repairs and a slower-than-expected sale — the two surprises that most often turn a profitable flip into a loss.