How Much Down Payment Do You Need for a Fix and Flip?
Most fix and flip lenders fund up to 90% of purchase, so plan on roughly 10% down plus closing costs and your share of rehab. Here's how the cash adds up.
On a fix and flip, plan on roughly 10% of the purchase price as a down payment, plus closing costs. Lenders fund up to 90% of purchase and up to 100% of the rehab, so the purchase down payment is usually your biggest cash item.
What you actually bring to closing
- Down payment — about 10% of the purchase price.
- Closing costs — title, valuation, legal, and lender fees (points).
- Rehab carry — you typically fund each rehab stage and get reimbursed by draw, so you float the work short-term.
- Reserves — a cushion for overruns and carrying costs.
How to reduce your cash in the deal
Buy further below market so the equity offsets cash, bring a partner or private money for the down payment, or use an interest reserve so you make no payments during the hold. Experienced flippers can also earn higher leverage, which lowers the down payment.
Frequently asked
Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.
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