Carrying Costs (Hold Costs)
Monthly costs of owning a property during renovation: interest, insurance, taxes, utilities.
Definition
Every month you hold a property during rehab costs money — even if no work is happening. Loan interest, insurance premiums, property taxes, utilities, and sometimes lawn care or security. These add up fast. A $150K draw at 9% interest plus $200/mo insurance and $300/mo taxes costs ~$1,625/mo in carry. A 5-month rehab: $8,125 in carry costs alone.
Formula
Monthly Carry = Loan Interest + Insurance + Property Tax + Utilities + Other Total Carry = Monthly Carry × Hold Months
How Kaison Uses This
Pipeline step 3 (calc_carry) computes carry costs automatically from your LOC rate, hold timeline, and monthly fixed costs. The P90 variant uses the extended timeline (+30%) to show worst-case carry.
Related Terms
Educational content only. Consult a CPA or attorney for advice specific to your situation.