How much profit on your 1st flip?

Question

How much did you really earn on your first flip? I bought my first flip for $120k (in hindsight, I probably paid $15k too Much). Resale value is approx $200-215k. I expect renovations to cost $60-70k (I’m padding in extra for worst-case scenarios, I’m conservative like that). Carrying costs are minimal, I bought all cash - no bank interest to worry about. Annual taxes are low. If I break even, should I consider this a success for a first flip? Or should I call it quits? what lessons did you learn on your first flip?

Ty Coutts · Answer

Breaking even on your first flip isn’t a failure—it’s a valuable learning experience. Since you estimate a resale value of $200-215K and renovation costs of $60-70K (although you said that's on the higher end), your margin is tight, especially considering closing costs, realtor fees, and unexpected expenses. A key lesson here is buying at the right price; overpaying by $15K can make a big difference. Future flips should focus on negotiating better deals and ensuring a strong after-repair value (ARV). It is a plus that you bought all in cash and didn't accumulate any interest. As a loan officer, I've seen a few people go through the same scenario of basically breaking even. Use the experience into your next one and crush it! Any other questions feel free to DM or email me!