Our Fix & Flip Budget Template: What We Actually Spend on 100+ Properties
Our Fix & Flip Track Record
After 100+ flips across Minnesota and Florida, we've learned one thing above all else: the deal is made or lost in the budget. Not in the purchase price. Not in the sale price. In the renovation budget — specifically, in how accurately you can estimate costs before you buy.
Most new investors lose money on their first flip not because they overpaid for the property, but because they underestimated the renovation. They budgeted $40,000 and spent $75,000. They planned for 60 days and it took 120. They thought they'd sell for $350,000 and had to drop to $325,000 to move it. Each of those errors is survivable individually. Together, they turn a $40,000 profit into a $15,000 loss.
This post shares our actual budget template — the categories, the line items, and the real numbers from our deals. We're also sharing the biggest budget mistakes we see new investors make and how to avoid them.
The 70% Rule: A Starting Point, Not a Formula
You've probably heard the 70% rule: offer no more than 70% of the After Repair Value (ARV) minus your estimated repair costs. It's a useful quick filter, but it's not a substitute for a real budget. The 70% rule assumes a 30% margin that covers your purchase costs, holding costs, selling costs, and profit. In practice, those numbers vary enormously by market, deal type, and your cost structure.
In a hot market where you're using hard money at 12% interest, holding for 90 days costs you significantly more than in a market where you're using a portfolio loan at 7%. The 70% rule doesn't account for that. Use it to quickly screen deals, but always build a real budget before you make an offer.
The Complete Budget Template
Here are the categories we use for every flip, with typical cost ranges based on our experience in the Midwest and Southeast markets. Your numbers will vary based on your market, your contractor relationships, and the specific property — but these ranges give you a starting framework.
1. Acquisition Costs
2. Holding Costs
This is the category most new investors underestimate. Every month you hold the property costs you money — and delays are almost guaranteed.
Rule of thumb: budget holding costs for 1.5x your estimated renovation timeline. If you think it'll take 60 days, budget for 90.
3. Renovation Costs by Category
This is the heart of the budget. We break renovation costs into these categories:
Structural & Foundation
Always get a structural inspection. Foundation issues are the #1 budget killer on distressed properties.
Mechanical Systems
Mechanical systems are non-negotiable for resale. Buyers will walk if HVAC or electrical is flagged in inspection.
Kitchen
Kitchen ROI is highest in the $200K–$400K price range. Above $500K, buyers expect more and the cost goes up significantly.
Bathrooms
Budget for all bathrooms. Buyers notice mismatched quality levels.
Flooring
LVP is our go-to for flips — durable, looks great, and buyers love it.
Interior Finishes
Fresh paint is the highest ROI item in any flip. Never skip it.
Exterior & Curb Appeal
First impressions drive offers. Budget at least $3,000–5,000 for curb appeal on every flip.
4. Selling Costs
The 5 Biggest Budget Mistakes We See
Download the Full Spreadsheet
The Fix & Flip Blueprint course includes our complete deal analysis spreadsheet — a working Excel file that calculates your maximum allowable offer (MAO), projected profit, ROI, and cash-on-cash return based on your specific numbers. It's the same tool we use on every deal.