11/04/2026
Bright idea: Here is one of the most common ways new real estate investors lose money on a flip:
They forget to count holding costs.
Here is what holding costs are: every expense you carry while you own the property before you sell it.
- Mortgage interest (or hard money interest — often 10-12% annualized)
- Property taxes (prorated monthly)
- Insurance
- Utilities
- Security if the property is vacant
Here is how to calculate your total holding cost:
Monthly carrying expenses x estimated months held before closing the sale.
If your monthly carrying cost is $1,800 and the project takes 5 months, that is $9,000 in holding costs alone — before a single nail is driven.
A deal that takes 2 extra months to sell because of market conditions, contractor delays, or inspection issues can erase a thin margin entirely.
Count holding costs before you write the offer. Not after.
Deal analyzer: link in bio
Community: skool.com/aspire