First Fix & Flip Might Have To Rent It

[Graham Bozarth]

I just wrapped up my first fix-and-flip project that turned into more of a BRRRR deal, and I'm looking for some feedback on what I could do better next time.

Here are the numbers:

Purchase price: $54,800

Total invested (repairs + all costs): about $145,000

Goal rent: $1,200–$1,300/month (not rented yet)

Plan: Refinance to pull out $100K to pay off my LOC, which would leave me about $45K still tied up in the property

Deal analyzer shows: Around $140/month cash flow after all expenses if I refinance

The renovation ended up being much more than expected. I originally planned to just replace the roof and service the HVAC. Instead, I ended up doing:

All 16 windows replaced

Granite countertops

New roof

New HVAC system

New breaker box and meter

New PEX plumbing

Normal paint, and floors updates

I also made some rookie mistakes:

Tried to do some work myself to save money ended up wasting about $5–8K having to redo or hire pros to fix it. Didn’t go with the lowest bids, went with “middle” bids thinking that meant better quality — but the work still wasn’t great. Hired a general laborer for $30/hour who took advantage of me not being onsite often. Should’ve been a $2–3K job, but I ended up paying around $6K.

Where I’m at now:

The house is in great shape, everything major is new, and it should be low maintenance for years. But with the refinance, it’ll only cash flow around $140/month — and I’ll still have $45K tied up in it.

Looking for advice:

Would you still refinance and hold it, or sell and move on?

How do you vet and manage contractors better (especially when you can’t be there every day)?

What tools or systems do you use to track labor, materials, and quality control?

How do you avoid scope creep and create more accurate repair estimates up front?

This has been a big learning experience, and I’d appreciate any insight from those who’ve done a few of these already.

[Kevin Jo]

$140 a month is pointless, one eviction, any maintenance issues and your negative. Just take the loss and move on. Just pretend you spent $50k learning a valuable lesson. Don't chase the bad money, make better decisions next time and move on. Unless your area is growing, has great schools, etc. and you think it will appreciate over time that is one way to get some of your money back. You will benefit from big write offs so you can make up some money there as well. Educating yourself about all phases of construction should be a priority. Using Youtube to learn trades is valuable as well as reading Code books. You don't have to know everything but a little about each trade helps. Pick one thing that you can master and work on that, example (windows). When you got that down pick something else. Keep growing and learning and pretty soon your saving tens of thousands.