Read this thread with great interest having kept sheep for an awfully long time! I think its as expensive as you want to make it!
So you could go for say 10 fantastically expensive shearling ewes from a top flock plus a ram from another top flock....and whether pedigree rare or minority breed or commercial breed the expense is going to be eye watering.....and even more eye watering for more!
So you could buy 10 old cast ewes from a top flock....will still have a lambing or two in them but you will pay peanuts comparatively and get ewes that have proven themselves in a good flock. Same for a ram, a good proven chap in the twilight of his career!.....you then can breed your own 'top quality' flock
Equipment.....yes you can go and buy thousands of pounds of shiny new stuff, but some of the smartest Texel sheep I have ever seen including 4 royal show champion rams in the same field was a small farm literally held together with baler!!! Their stock/grassland management was amazing...their equipment basic and involved lots of bits of pallet....!
Making a profit is very very possible.....my sheep have always been in profit and I have kept everything from longwools to minature sheep and plenty of commercials.
Steve in hants.....Oh yes it is possible to breed top tups from a small flock....its part of the stock skills that you aquire! I sold a wensleydale ram lamb several years ago and he went on to win at every show he went to as an adult....and I only kept a few wensleys for fun at the time (but again based on some old ewes and an elderly ram I aquired in a job lot of sheep)
Its possible to be profitable from commercial meat lambs, esp as the price is good at the moment, but its also perfectly possible to be profitable from specialost sheep....esp ones with coloured or long wool as skins from these sheep sell for amazing amounts
When it comes to feed bills.....simple answer is do not run too many sheep for your land......and too many smallholders have too many animals
Vets bills can be reduced to minimal with good stock management and learning from other experienced people BEFORE expensive mistakes are made.
Medicines.....again mostly over used and not understood properly which is sad....and incredibly expensive.....make sure you know your wormers, fly treatments etc.
Sheep of all breeds can cost little, be kept on a budget and can make a profit but it requires resourcefullness and knowledge....plus a little bit of luck