Flip Holding Cost Calculator

Build the monthly carry for a flip project — loan interest plus property tax, vacant-property insurance, utilities, HOA, and any other monthly costs — and total it across the planned hold.

Hold months (purchase to sale)

Loan balance during hold

Loan rate

Monthly property tax

Monthly insurance (vacant policy)

Monthly utilities

Monthly HOA

Other monthly carry

Total holding cost

$19,935

across 6 months

Monthly carry

$3,323

Interest portion

$15,675

$2,613/mo

Tax/ins/util/HOA portion

$4,260

Reading the number

Holding costs are the silent killer of flip profit. Every month a project takes longer than planned eats $4,000–$8,000 of expected profit on a typical project.

Vacant property insurance costs more than standard policies. Utilities run higher than you'd think (water, heat, and electricity for power tools). Build a buffer — flip projects almost always run longer than initial schedule.

How to Use

Enter the planned hold months (purchase to close on resale).
Enter the loan balance and rate during the rehab period.
Enter monthly tax, insurance, utilities, HOA, and other carry items.
Read total holding cost — feed this into your profit-per-deal calculation.

Frequently Asked Questions

Why is vacant insurance so expensive?

Vacant homes have higher loss frequency (water damage, vandalism, fire). Standard homeowner policies usually exclude vacant properties; a builder's risk or vacant dwelling policy is required. Premiums often run 2–3× standard.

What's a typical flip hold time?

4–9 months for most cosmetic-to-medium rehabs. 9–18 months for heavy renovations or additions. Plan for the longer end — overrun is the norm, not the exception.

Do I pay interest on the full loan during construction?

On hard money: usually yes — interest on the full approved loan from day one, regardless of draw. On construction-perm loans: only on the drawn portion, but admin fees can mimic interest on the undrawn balance.

Should I include utilities even for vacant rehab?

Yes — power for tools, lights, and HVAC; water for cleaning and crews; gas if heating during cold weather. $100–$300/month is typical depending on season and project size.