Costs needed to keep in mind for a flip

[Gerardo Lewis]

So I'm working on my first flip right now and I want to be sure I am taken into account all the costs I should keep in mind.

1st Loan amount

2nd rehab cost

3rd holding cost

4th selling cost

is there anything I'm missing?

[Shawn K Hicks]

Quote from @Gerardo Lewis:

So I'm working on my first flip right now and I want to be sure I am taken into account all the costs I should keep in mind.

1st Loan amount

2nd rehab cost

3rd holding cost

4th selling cost

is there anything I'm missing?

 Capital Gains taxes are another consideration. I had a local investor that had a nice run for a few years where he'd renovate the property, but then rent it for one year. This is admittedly a gamble as the wrong tenant could end up costing you, but for this particular investor, it worked out in every case. He went this route for two reason: 1. He still had to pay capital gains, but it was less than "short term" capital gains. 2. The properties where he employed this strategy further appreciated during the 1 year they were leased. *It's also noteworthy that he's liquid for several mil, & did not have to worry about paying off hard money lenders, having too much capital tied up in one property, etc.