The complete costs of house flipping

December 27, 2009

Since our house has been under repair, I've been visiting housing sites for other possible changes we might want to make. Hey, if you're already in disarray because of renovations, why not get everything out of the way all at once?

During my surfing, I ran across the BuildDirect Building Materials Blog, which had this interesting graphic detailing some possible costs of flipping a house.

Cost of Flipping House

Remember, too, that you'll have to pay taxes on any profit you make on the sale. And if you're lucky enough to turn over the property after owning it for a year or less, that tax rate will be at your ordinary income level, not the lower capital gains rate.

But if you've weighed the costs, know your region's real estate market and are ready to invest in a property,this story has some tips on dealing with the tax consequences you might encounter when you flip it.

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Comments
  • chris
    15 years ago Reply

    Ditto to the comment above. There are a lot more cost involved and the revised price may put you over whatever the market will bear.

  • Tim Hawkins
    16 years ago Reply

    This list ignored: carrying costs (interest on your down payment lost + interest payments on the home loan + interest payments on the repair costs if separate) consider also the rate will be higher for a fixer since it’s not your primary residence, closing costs on the front AND back end (points, inspections, deed/recording fees, title insurance, lender fees, appraisal fee, transfer tax, application fee, escrow fee, termite inspection fee, attorney’s fees in some areas, lenders attorney’s fees in some areas, documentation fees, FedEx fees…), property taxes, insurance to cover the home and the construction effort, mileage and fuel for your car, taxes on the gain at standard income rates (as mentioned here only), and finally… wait for it… wait for it… your time.

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