How Much Money Do You Really Need to Flip Your First House?

Flipping houses can be one of the most powerful ways to build wealth through real estate. But for new investors, one of the biggest questions is:

“How much cash do I actually need to get started?”

The internet is full of vague answers or outdated advice — but as private money brokers and active investors, we know exactly what lenders are looking for, and what you’ll need to bring to the table.

Here’s the real breakdown — plus a sample deal to help you see how the numbers stack up.

What Most Lenders Require for a Flip

If you're working with a lender like us who understands fix & flip investing, you won’t need to cover the full purchase and renovation yourself. In fact, our lenders fund 100% of the rehab costs — released in draws throughout the project.

That means your cash requirements are focused on three main areas:

1. Down Payment

Most lenders want 20% down on your first flip. As you gain more experience, that can drop to 10%, making your upfront investment even lighter.

2. Closing Costs

Plan for 2–5% of the total loan amount. This includes origination fees, title, insurance, and other closing-related expenses.

3. Cash Reserves

Most lenders will want to see 3–6 months of interest-only payments in reserves. This is to make sure you’re protected financially throughout the project.

A Real Example: Let’s Run the Numbers

Let’s say you’ve found a great property:

• Purchase Price: $150,000

• Rehab Budget: $50,000 (covered 100% by lender in draws)

• ARV (After Repair Value): $290,000

To close this deal, you'd likely need:

• $30,000 for the down payment (20%)

• $3,000 to $7,500 for closing costs (2–5%)

• $2,500 to $5,000 in reserves (3–6 months interest-only payments)

So your total out-of-pocket would be around $35,500 to $42,500.

If you're more experienced and qualify for a 10% down payment, that total drops closer to $25,000 — a much easier entry point for scaling.

You Don’t Need to Fund the Whole Flip — You Just Need the Right Strategy

The key to flipping successfully is knowing how to structure the deal and who to trust with the lending.

We help new and seasoned investors get fast, flexible funding for flips every day.
And because we’re investors ourselves, we understand the urgency, the pressure, and the power of having the right people in your corner.

Want to Know Exactly What You’ll Need to Get Approved?

Grab our free Fix & Flip Funding Checklist to see exactly what documents to prepare, how to avoid funding delays, and what most lenders want to see.

You’re closer to your first (or next) flip than you think.
Let’s get your deal across the finish line.