Please critique my gameplan when it comes to wanting to flip my first property.

Kevin Moise · 2025-02-02T06:00:05-08:00

I am 24 years old from Ft. Lauderdale, Florida and two years out of college with 80k saved with no debt looking to flip a house for the first time. So far I have contacted a decent real estate lawyer and had them recommend contractors to make sure I am not getting screwed over and the help me through the process and hired a CPA. Getting hard money lending for the property and flip but still shopping around. I tried looking to flip in Florida but everything is much more expensive here compared to anything else out of state and I know its riskier to flip out of state as well. Before buying I need to See if I am buying in a good area/decent market (looking in the midwest specifically).Look at comps.See if the house is flippable or a money pit.Inspect homeTermite inspectionFoundation issues (I am only buying a house connected to the ground not with a crawl space)Structural issues.Roof issuesBad ceiling (uneven ceiling, popcorn ceiling)Window problemsElectrical issuesPlumbing issuesAC issuesMoldLeaksMight sound weird but too many crack on side walk or driveway.Actually have a contractor go through and see if it is flipable or not. An estimate cost.Do a surveyAlways run the numbers so that they make sense. I work as a financial analyst so I have my own excel sheet and also will have to communicate with my CPA so everything checks out. Hiring a contractor Get a reputable contractor(within budget) from asking around. As said before I am talking to a lawyer about that.Get everything in writing (legal documents) before starting and have the CPA record all transactions between contractors and I. Also make them sign a lien waiver so they can not say I did not pay them.Set up an account with wherever materials are bought so I am charged directly and contractors dont stiff me like how they would if I gave them money directly to buy materials.Looking for a contractor who will not need a deposit to start as I am planning to pay in phases for labor but I have been thinking about just paying for everything once their all done (I am kind of paranoid about contractors lol)Hire two different inspectors to see if the house is actually good when done.Currently want to work on 2/3 br houses so I am trying to get flips done in 3 months.Prepare for unexpected costs. Selling the house Maximum market exposure - MLS, zillow, etc.Get good realtor recommened by lawyer.Make sure the price makes sense and have a lot of high quality pics of the house around 50-75 pics.Make pontential buyer sign nonrefunable earnest money contract.Examine all offers What else am I missing or should I change?

Mark UpdegraffBusiness Member

Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 715 votes

1y

You’re off to a great start—most first-time flippers don’t take the time to plan like this, and it’s smart that you’ve got a real estate attorney, CPA, and a plan for vetting contractors. That’s exactly how you should approach it. With $80K saved and no debt, you’ve got a solid foundation to make this work.

That said, I have to ask—why the Midwest? I get that Florida is expensive, but flipping out of state for your first deal is a tough way to start. If you haven’t already, you should take a hard look at Rochester, NY before committing to another market.

The inventory here is crazy low, and demand is through the roof. Houses in the suburbs are regularly selling $100K–$200K over asking, and we use delayed negotiations to drive up prices. Flippers here are seeing insane ROIs, and unlike some Midwest markets where appreciation is slow, Rochester homes actually move.

You’re obviously being smart about making sure the numbers work, and that’s exactly why this market should be on your radar.

I run Updegraff Group Realty, and we specialize in helping investors maximize returns in this market. This isn’t theory—we do this every day.

Vetted contractors—no chasing down unreliable guys or getting ripped off. We already have top-tier crews who get the job done right.

Reliable construction costs and timelines—you mentioned trying to avoid deposits, but I’ll be real with you, good contractors won’t start without one. We charge 50% upfront because that’s how you lock in quality work without delays.

Off-market deals and investment analysis—I know exactly where to buy, what to renovate, and how to sell for the highest price. The numbers don’t lie, and I can walk you through actual case studies to show how flips perform here.

If you’re set on the Midwest, I get it. But if you’re open to looking at a stronger, more predictable market with way bigger upside, Rochester should be on your list. Either way, happy to share insights that can help you make the smartest move.

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Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

1y

Welcome! Congrats on saving up that much money so young, that's impressive.

I have to be honest- I didn't read your entire post, as soon as you mentioned that you wanted to do your first flip remotely due to cost, I can already tell you that this is a bad idea. Just take five minutes scrolling through these forums to read the never ending nightmare stories that people have- all of them also thought they had a good plan and were going to save money or not have the same problems that happen to other people.

Get your feet wet locally. Use hard money or do a few live in flips to keep your costs low. You don't know what you don't know and when there is a problem- and there WILL be a problem- you want to be able to go to the site and talk with your contractors face to face.

I'm not trying to be negative or dramatic, but this is a very common way for people to lose their life savings. If there's one thing that every new real estate investor can benefit from is that you'll be successful if you don't step over dollars to pick up dimes. Those deals that look great all over the midwest- why do you think those properties are so cheap? And why are there so many of them? Why are they sitting on the market for so long?

Stay local, learn the ins and outs and stretch a bit once you have your feet under you.

Best of luck!

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Kevin Sobilo

Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes

1y

@Kevin Moise, a few things to consider:

1. If being an active investor was as easy as identifying these items you listed and hiring decent providers (contractors, agents, lawyers, etc) wouldn't everyone with some money be making money investing?

2. A successful active investor usually has something to add to the process from their own knowledge/experience. They might be an accountant, contractor, or real estate agent themselves and have expertise and experience in some aspects of the process.

3. You mention investing at a distance being more difficult, but don't seem to appreciate how much more difficult it is. Even learning a real estate market distant from you is a big task on its own!

In some markets a 40 year old house is "old" in others a 40 year old house is "pretty modern". Markets differ in the type of housing stock, building methods and requirements, buyer perception and expectations, etc etc.

4. You mention hard money loans. Many hard money lenders don't want to lend to a newbie because they evaluate "the deal" and the experience of the borrower/investor is a big part of whether a deal is likely to be successful. So, you may wish to make sure a lender will lend to you before putting in a lot of work finding a deal.

5. Have you considered a "Live-In Flip"? Buy a dated but functional home and live in it and work on it for 2 years before selling.

The advantages are getting experience in a safer deal. You can use conventional financing with low down payments and fixed interest rates because this is a primary residence. When you sell after 2 years of living there you can sell and not pay profit on the 1st $250k in profits! A nice bonus!

6. Consider seeking out local investors and learning from them. Go to local investor meetups. Maybe a local investor will offer to have to visit a project they are working on and discuss it in detail. I have done that with newbie investors a number of times.

7. Consider that you want to have some level of expertise in ALL aspects of the process. Its hard to manage a plumber when you have no clue about plumbing. You will struggle if you just listen to what your hired experts say.

Even a good contractor/plumber isn't going to give you the best advice a lot of the time. They don't have a good handle on the big picture otherwise they would be the investor themselves.

There are also TONS AND TONS of horror stories about dealing with tradesman and they are TRUE! Plus MANY MANY more problematic situations that come up daily. You need to be able to manage those.

8. Study project management! Every rehab you do is a "project" and while it is hugely helpful to have some knowledge of all aspects most people can't be expert in all of them. Having project management knowledge/skills will help you understand how to cope with that and manage a project to success.

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Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

1y

Be prepared to lose that $80k if you don’t do an in state live in flip. Not saying you will, just saying be prepared to. If you expect to make more than 12% ($9k) as a first timer, ask yourself why everyone isn’t doing it? You can’t expect to make more doing zero work as a first timer than many people make in a a year. Ask yourself, if you lose $10-$20k are you going to consider it lesson learned and try again or move on to something else. How much more do you expect to make NET. Because it’s an out of state not live in flip taxed as the highest rates instead of tax free? Is that amount worth the extra risk?

You MIGHT make much more money with much less risk if you house hacked a live in flip. It’s literally less risky than just buying a home to live in. You’ll have extra income while the work is being done. You’ll be onsite to oversee the work. You’ll get better financing, pay less interest and insurance, won’t be under financial pressure to sell at a bad time, and won’t give 20-30% of your profits to the government.

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Ryan Maggard

Lender · Cleveland Ohio · Member since 2025 · 42 posts · 1 vote

1y

I can help we have amazing fix and flip products for first time investors licensed in all states.

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Shiloh LundahlPro Member

Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes

1y

@Kevin Moise your list of things looks very academic, like you are learning how to flip from a book or in a class room.

While you are checking into all of those things that you listed above, the deal is already gone. And if it is not gone, then it's not a deal. Also, a lot of your profit will be eaten up in all of those services that may not be necessary.

What I would suggest instead is, if you want to flip, network with other flippers in the area where you would like to flip. Fly there and go to some meetups or conferences. As you get more familiar with the area and start to develop good relationships with people doing what you would like to do, see if you can help fund a flip of an experienced flipper with a good track record in flipping. Look at the deal, run the numbers, Get the proper documentation done such as a promissory note and deed of trust, then fund the deal on a schedule when work has been completed. Ask to be involved in the process. Ask questions, get videos and pictures of the process. Fly there and be part of it and network more with people that are part of the process. This will help you build a team there.

Get real world experience, not just what sounds thorough academically.

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

1y

@Kevin Moise

start with a live-in flip. it sounds like you're in a perfect position to do that. if you're willing to put up with the headache - that's your advantage. or, even better: just start with a regular house hack that isn't distressed but just needs some cosmetic updates. rent out the rooms to your friends and sleep in the basement or in a closet. the more inconvenience you can put up with, the better you'll do.

beyond that a few random comments for you:

-lawyers don't usually recommend contractors. so not sure how they would help or what you're trying to accomplish (but maybe there is something in what you're doing there that I'm missing?)

-the best flips start with distressed, off market properties. how will you establish a lead source for those? difficult locally, spectacularly difficult out of state.

-are you going to meetups? go to meetups. go to all the meetups. go to meetups 2 hours away. inconvenience yourself to go to meetups.

hope this helps. did i mention house hacking? you should house hack.

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Jesse Rivera

Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes

1y

Quote from @Nicholas L.:

@Kevin Moise

start with a live-in flip. it sounds like you're in a perfect position to do that. if you're willing to put up with the headache - that's your advantage. or, even better: just start with a regular house hack that isn't distressed but just needs some cosmetic updates. rent out the rooms to your friends and sleep in the basement or in a closet. the more inconvenience you can put up with, the better you'll do.

beyond that a few random comments for you:

-lawyers don't usually recommend contractors. so not sure how they would help or what you're trying to accomplish (but maybe there is something in what you're doing there that I'm missing?)

-the best flips start with distressed, off market properties. how will you establish a lead source for those? difficult locally, spectacularly difficult out of state.

-are you going to meetups? go to meetups. go to all the meetups. go to meetups 2 hours away. inconvenience yourself to go to meetups.

hope this helps. did i mention house hacking? you should house hack.

I knew a guy that did this. Bought a home, lived in it while rehabbing, stay there for 2 years, and sold it, profits with no taxes. Rinse and repeat. Did it for years, and even found a wife that was happy to do it with him.

Bought some rentals with the profits, and is living the good life now.

1 Reply

Obed Calixte

Real Estate Agent · St Petersburg, FL · Member since 2019 · 321 posts · 182 votes

1y

Great job taking the time to plan and ask questions before jumping into the deep end.

To your question - there's much more to consider:

Flipping locally is already hard enough, doing your first flip out of state is going to be even harder.

From my experience and based on what you shared - it seems as though partnering with a local successful flipper or doing a live in flip will be your best bet.

Few quick things:

You will be hard pressed to find a GC that operates with no upfront deposit required. Take the time to vet and find reputable contractors and you will have alot less to be paranoid about.

Define your buy box further (currently it's 2/3 bdrm home on slab)

Determine how you will finance and their requirements

Math is easy. Do you and your CPA know how to analyze properties effectively? Ie determine ARV and work backwards to the max offer while including all costs included in the acquisition, hold and disposition of a property.

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Please critique my gameplan when it comes to wanting to flip my first property.

Please critique my gameplan when it comes to wanting to flip my first property.

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