Holding and Financing Costs? Calculating and difference??

[LeAnna Davis]

I am a brand new investor and have a couple questions.  Ok so I have a property that I am looking at that has a potential to be a good flip.  Profit is $20,000 BUT I have not calculated the Holding costs or Financing costs yet.  For safety's sake say it took 5 months to fix this house up.  Then what?  The monthly insurance is roughly $40 rounding up.  And monthly property tax is about $130 rounding up.  Any help?  Google has not helped much these past two hrs.  What else do I need?

[Ed Emmons]

Unless you are paying cash you have interest expense, and utilities. If you are in a hot market and you estimate 5 months rehab figure on 8 months hold. If market is soft figure one year and be ready to short term rent. I always figure 60 days after I have a sales contract.  

Do you have to do rehab work? If so are you experienced enough to be sure of you costs? 20,000 is not that much margin unless everything is figured correctly.