Is 70k enough to get started ?

Question

I have about 80k in equity in a condo and wondered if it is enough to get started on a flip. I would need to sell my current home and rent for the time being but I would have 70k cash.

Ashish Acharya · Answer

Alex, $70K can be enough to get started on a flip, but I wouldn’t use the cash balance by itself to decide whether you’re ready.

The bigger question is how much of that $70K would still be available after the down payment, closing costs, rehab, loan points/interest, insurance, utilities, property taxes, permits, carrying costs, and selling costs. I’d also want a meaningful contingency because the first flip is rarely the one where every rehab number comes in exactly as expected.

I’d be especially careful about selling your current home just to free up capital for the flip unless you’ve already modeled the downside. You’d be giving up housing stability and concentrating a large portion of your liquidity into a project that could take longer or cost more than expected.

Before making the move, I’d run the deal under a conservative ARV, higher rehab cost, and a longer holding period. If you still have healthy profit and enough reserves afterward, then $70K may be workable depending on the financing structure and the market.

From the tax side, if your condo has been your primary residence, I’d also review whether any gain on the sale could qualify for the Section 121 home-sale exclusion before you sell. And if flipping becomes an ongoing business rather than a one-off project, it can be worth evaluating whether an S-Corp makes sense based on profit level, volume of flips, reasonable compensation, and your broader tax situation.

Feel free to DM me, I’d be happy to send over our Flip Analyzer so you can stress-test the purchase, rehab, financing, carrying costs, and worst-case scenarios before deciding whether to sell the condo.

Divin Kanyama · Answer

@Alex Roa $70K could be enough to start a flip in some markets, but the key is not the cash balance alone—it is the total project cost and how much reserve remains after closing. Budget for the down payment or purchase, renovation, financing costs, taxes, insurance, utilities, permits, selling expenses, and a healthy contingency for surprises.

I would be cautious about selling a primary residence and using nearly all the equity on a first flip. That adds rent and moving costs while concentrating a large portion of your capital in one project. Before making that decision, get lender terms, contractor estimates, and several conservative deal analyses. Make sure the numbers still work with a longer timeline, a lower resale price, and higher repair costs.

If $70K leaves little or no reserve, consider starting with a smaller project, partnering with an experienced investor, or continuing to save. The first goal should be staying financially secure even if the flip does not go as planned.

Is 70k enough to get started ?

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