First Fix & Flip Might Have To Rent It

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First Fix & Flip Might Have To Rent It

Graham Bozarth
Member since 2023 · 21 posts · 7 votes

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.

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Kevin Jo
Member since 2025 · 28 posts · 22 votes
11mo

$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.

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    11mo
    Quote from @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.

    Hey @Graham Bozarth, welcome to the BP Forum! Couple of high level questions: 1) Am I right to assume this is a single family property? 2) What's the ARV?, and 3) If you refi it, how much money/equity (above the $45k) are you willing to keep in?

    [email protected]
    0Reply
  • Graham Bozarth
    OP
    Member since 2023 · 21 posts · 7 votes
    11mo

    Yes, it’s a single-family property at 809 N Ross Ave in Dewey, OK.

  • The ARV is around $150K–$160K based on local comps after rehab.

  • On the refinance, I’d plan to pull out about $100K, which means I’d still have roughly $45K of my original investment left in the property. I’m okay leaving some capital in since it won’t cash flow if I try to pull all of it out. However, I’d definitely prefer to pull all of my money out if I could and still have it cash flow.

0Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    11mo

    @Graham Bozarth Is Dewey considered "rural"?

    [email protected]
    0Reply
  • Graham Bozarth
    OP
    Member since 2023 · 21 posts · 7 votes
    11mo

    Yes 

    0Reply
  • Kevin Jo
    Member since 2025 · 28 posts · 22 votes
    11mo

    $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.

    1Reply
  • Graham Bozarth
    OP
    Member since 2023 · 21 posts · 7 votes
    11mo

    @Kevin Jo what cash flow per month are you shooting for?

    A lot of stuff ive read said 150-250 is a good number. I'm obviously new to this. I was shooting to make 20% on each flip or cash flow rentals 150+. 

    what do you recommend to shoot for?

    0Reply
  • Graham Bozarth
    OP
    Member since 2023 · 21 posts · 7 votes
    11mo

    @Jaycee Greene for fha it is considered rural. But it is in a city. 

    0Reply
    • Mike Kirby
      Rental Property Investor · New Braunfels, TX · Member since 2021 · 289 posts · 256 votes
      11mo
      Quote from @Graham Bozarth:

      @Jaycee Greene for fha it is considered rural. But it is in a city. 

         If you are going to live there for the next ten years I would keep it and rent it. If you plan on moving I think I would sell it at breakeven if you can and consider it a good learning experience.
         It doesn't seem like Dewey is an area that is going to appreciate a lot but if you can keep a tenant in there for ten years you will have built a lot of equity and some appreciation. 
         Best of luck.
      1Reply
    • Graham Bozarth
      OP
      Member since 2023 · 21 posts · 7 votes
      11mo
      Quote from @Mike Kirby:
      Quote from @Graham Bozarth:

      @Jaycee Greene for fha it is considered rural. But it is in a city. 

         If you are going to live there for the next ten years I would keep it and rent it. If you plan on moving I think I would sell it at breakeven if you can and consider it a good learning experience.
         It doesn't seem like Dewey is an area that is going to appreciate a lot but if you can keep a tenant in there for ten years you will have built a lot of equity and some appreciation. 
         Best of luck.

       Thank you. I live about 30-40 min from that house. However, I am leaning toward listing it for sale $168k and rent for $1300 at the same time.  Whatever comes first I guess. 

      0Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      11mo
      Quote from @Graham Bozarth:

      @Jaycee Greene for fha it is considered rural. But it is in a city. 

      @Graham Bozarth Being in a "city" isn't the deciding factor. If FHA considers it "rural", I'd recommend checking with Armstrong Bank and Arvest Bank for the refinance. Also, having a tenant in the property while trying to sell it might creates some issues (unless you're selling to an investor). Good luck!

      [email protected]
      0Reply
    • Mike Kirby
      Rental Property Investor · New Braunfels, TX · Member since 2021 · 289 posts · 256 votes
      11mo
      Quote from @Graham Bozarth:
      Quote from @Mike Kirby:
      Quote from @Graham Bozarth:

      @Jaycee Greene for fha it is considered rural. But it is in a city. 

         If you are going to live there for the next ten years I would keep it and rent it. If you plan on moving I think I would sell it at breakeven if you can and consider it a good learning experience.
         It doesn't seem like Dewey is an area that is going to appreciate a lot but if you can keep a tenant in there for ten years you will have built a lot of equity and some appreciation. 
         Best of luck.

       Thank you. I live about 30-40 min from that house. However, I am leaning toward listing it for sale $168k and rent for $1300 at the same time.  Whatever comes first I guess. 

      That's what I meant about breaking even. After realtor fees and closing costs you will just about break even at a $168,000 sales price. Like @Kevin Jo says, learn from this and grow!

      1Reply
  • Kevin Jo
    Member since 2025 · 28 posts · 22 votes
    11mo

    @Graham Bozarth

    Graham, i started like you, making a few hundred a month on a property but at this point I do not buy anything I cannot make $1000 plus per month per property with most averaging $1500-1700 a month. I rebuild and remodel the crappiest properties I can find. I can frame, do all electrical, plumbing, siding, kitchens baths, structural work. That in itself saves me tens of thousands. When I started I only knew how to put sticky vinyl tiles down and paint, thats it. I never stopped learning the trades and kept grinding. Buying multi familys is the way to go as well, SFH don't make sense most of the time. You can find good deals out there but you have to be patient and really study your market. I do not buy out of my market which is basically a radius of about 60 miles. Don't get bogged down by this deal, you can do it!!!

    1Reply
  • Graham Bozarth
    OP
    Member since 2023 · 21 posts · 7 votes
    11mo

    @Mike Kirby @Kevin Jo  thank you both I will post an update on if it gets rented or sold. And let yall know on the next one. 

    0Reply
    • Jason Eyerly
      Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
      9mo
      Quote from @Graham Bozarth:

      @Mike Kirby @Kevin Jo  thank you both I will post an update on if it gets rented or sold. And let yall know on the next one. 


       Airbnb that sucker or rent to a travel nurse like myself as a medium term and get more juice out of it. I'd be happy to pay $125/month just to be building equity. Use it as an experience in managing tenants and the sort. 

      1Reply
  • Brendan Mullenholz
    Real Estate Agent · Washington, DC · Member since 2025 · 157 posts · 77 votes
    11mo

    That's a tough situation to be in so you got options.  Living in it and then renting it out might be your best option or just sell it and call it a day.  As for vetting contractors, watch youtube videos and learn about process/codes. You don't need to be an expert but have some knowledge so when you meet with trades people, you feel comfortable having a conversation with them.  Listen to what they have to say, ask them questions and get detailed quotes on what will be preformed on the house.  This will help you get a feel if they're BSing you.  Don't agree to anything until you've gotten at least 3 bids. It might take time but you're going to get a good product from it.  If they pressure you to getting the work done, that's usually a sign they're going to take the money and run.  

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    11mo
    Quote from @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.


    At that rent point, your sustained cash flow with $100k financed is less than $140/month, but let’s use your projected $140/month. 

    $140 * 12 =$1,680.00/year

    1680/45000=0.0373 so the return on the $45k (there is really at least $50k equity, but we will use the lower number of what is trapped in the property) is less than 4% which is less than my preferred money market account.   My money market account is passive and virtually zero risk.  This is terrible cash flow, but there are other sources of return.

    Value add: you already did the value add, not very successfully.  Point is there is no significant value add.  

    Appreciation: the price point shows this area historically has appreciation that has not kept up with inflation.  The implication is in inflation adjusted dollars this property is likely to depreciate.

    Tax advantages: not enough value to significantly leverage depreciation much less accelerated depreciation.  Not enough historical appreciation to get much value from either 2 of 5 year rule or 1031.

    Residential RE is not passive.   It takes effort and has risks.

    Unless you see a flaw in my analysis, what is the purpose of holding the property?   It does not seem like it can be the return.

    If you can sell losing just a small amount and walk away more educated, this would be your best option.   Maybe walk away with $30k ($15k lost) with an opportunity to put that $30k and your increased education to use.

    Good luck

    0Reply
  • Tiko Z.
    Member since 2025 · 10 posts · 4 votes
    9mo

    I'm sure you learned a lot through the process, I would also recommend Jeff Leighton's How to Estimate Repair Costs book.

    1Reply
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