The Costs You See and the 10 You Don't: Below the obvious costs lurk expenses representing 30-40% of gross rental income. Missing even a few flips a profitable deal into a money pit. The Full Expense Stack: Maintenance, capital expenditures, property management, vacancy loss, closing costs, legal/accounting, pest control, landscaping. The Expense That Eats Flippers Alive: Holding costs: mortgage interest, taxes, insurance, utilities per month. A flip stretching 3 extra months costs $5,700+ straight from profit. The Self-Management Illusion: Midnight plumbing emergencies, tenant showings, eviction research. Budget 5% of rent as self-management fee minimum. Tax Implications: Rental depreciation and interest deductions are good. Flips taxed as ordinary income (30%+) vs. capital gains (15-20%) is bad.