Cloudflare costs at most $200 ($20 is normal, but chances are he needs the $200/mo plan for obtuse reasons), but his hosting expenses should not even come close to what even we pay. We pay close to $1000/mo cumulatively because I have pay for a lot that normal webhosts of something KF's size and SA's size never have to think about.
He is outright lying about what he pays for computing costs, and if he isn't, he is hiring someone to take care of everything and doing what amounts to 2 hours a month of work at $2000/mo flat.
I offered to do his XF2 transfer for like $10k last time. If he's paying $2000/mo for hosting expenses, I will now throw down an offer to host it for $1000/mo if he provides the hardware.
I could get SA on XF2 in 3 to 6 months and I could host it for half what he's saying he pays. In fact, if he is willing to give me $10k for the remodel, I will host his site absolutely free for 6 months and then $1000/mo thereafter. From what he just said, I would save him $2000 and get the site the remodel it needs.