Going to do my first fix and flip this year in PDX, advice on education and resources

Portland, Oregon
Buying & Selling Real Estate
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Going to do my first fix and flip this year in PDX, advice on education and resources

Chris Matley
Member since 2023 · 1 post · 0 votes

Hey everyone — planning my first fix-and-flip and want to get as prepared as possible before I pull the trigger.

Some background on where I'm starting from: I already own a house-hack property here in Portland — I live in the main house and rent out the ADU on a 12-month lease, so I've got some landlord experience and have been through a purchase/financing/inspection process, just not a flip yet. I've got a friend who's an active developer walking me through underwriting and renovation budgeting fundamentals, which has helped, but I know there's a lot I still don't know.

I've run some numbers on what a realistic first deal looks like: targeting something in the $400k ARV range, and once I account for the down payment plus financing and holding costs through the rehab and resale, I'm estimating I'll need roughly $130k on hand to comfortably secure the loan and carry the project. I'd rather spend the next year getting genuinely competent than rush in and let inexperience eat into that capital.

What I'm hoping to get from this community:

What resources — books, courses, podcasts, local investor groups — actually moved the needle for you early on, versus what turned out to be a waste of time or money?

If you could go back to right before your first flip, what's the one thing you wish you'd nailed down first? Underwriting accuracy, contractor vetting, financing structure, something else entirely?

For a first deal around a $400k ARV, does ~$130k on hand sound like a reasonable cushion, or am I under- or over-shooting?

Appreciate any advice — happy to share more on the Portland market if it's useful for context.

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Jarred Sleeth
Investor · Austin, TX · Member since 2014 · 144 posts · 85 votes
2w

@Gregory Acs and @Sruly Goldschmied made good points about padding the rehab budget and timeline. The piece I would add is that a $400K ARV alone doesn't tell us whether $130K is enough.

Build a complete sources-and-uses sheet showing the purchase price, lender funding at closing, your required equity, points and closing costs, rehab funds held back, monthly carrying costs at both nine and twelve months, selling costs, and a rehab contingency. Then leave yourself an untouched reserve after all of that.

One thing first-time flippers sometimes miss is that many rehab lenders reimburse completed work. You may need enough liquidity to fund the first phase before receiving a draw.

I'd get an actual term sheet from a lender and model the deal around those terms. That will give you a much more useful answer than applying a general cash requirement to a $400K ARV.

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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 162 posts · 62 votes
    2w

    It sounds like you're taking the right approach by preparing before jumping into your first deal. If I could go back, I'd spend just as much time understanding the financing and holding costs as I would the rehab itself. A lot of first-time flippers focus on renovation budgets but underestimate carrying costs, interest, and what happens if the project takes longer or sells for less than expected.

    I'd also run your numbers with a few different scenarios, not just the best-case outcome. If the deal still makes sense after adding a contingency for time, costs, and resale value, you'll probably sleep a lot better during the project. If you'd like to compare financing options or pressure-test the numbers on your first flip, I'd be happy to help.

    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 917 votes
    2w
    Quote from @Chris Matley:

    Hey everyone — planning my first fix-and-flip and want to get as prepared as possible before I pull the trigger.

    Some background on where I'm starting from: I already own a house-hack property here in Portland — I live in the main house and rent out the ADU on a 12-month lease, so I've got some landlord experience and have been through a purchase/financing/inspection process, just not a flip yet. I've got a friend who's an active developer walking me through underwriting and renovation budgeting fundamentals, which has helped, but I know there's a lot I still don't know.

    I've run some numbers on what a realistic first deal looks like: targeting something in the $400k ARV range, and once I account for the down payment plus financing and holding costs through the rehab and resale, I'm estimating I'll need roughly $130k on hand to comfortably secure the loan and carry the project. I'd rather spend the next year getting genuinely competent than rush in and let inexperience eat into that capital.

    What I'm hoping to get from this community:

    What resources — books, courses, podcasts, local investor groups — actually moved the needle for you early on, versus what turned out to be a waste of time or money?

    If you could go back to right before your first flip, what's the one thing you wish you'd nailed down first? Underwriting accuracy, contractor vetting, financing structure, something else entirely?

    For a first deal around a $400k ARV, does ~$130k on hand sound like a reasonable cushion, or am I under- or over-shooting?

    Appreciate any advice — happy to share more on the Portland market if it's useful for context.

    You’re doing the right thing by learning before risking $ 130K. For a first flip, I’d put contractor vetting and accurate rehab estimates at the top of the list, because small misses can quickly eat into your profit. I’d also compare Portland with Midwest markets like Ohio if you’re open to going out of state. Lower acquisition costs can give a newer investor a little more room for mistakes while still creating upside through the rehab.

    [email protected]614-418-6081
    1Reply
  • Sruly Goldschmied
    Lender · United States · Member since 2026 · 17 posts · 4 votes
    2w

    Smart to take the year. From the lending side the first flips that go sideways almost never go wrong on the purchase, its the rehab budget and the timeline. Pad both more than you think you need

    1Reply
  • Jarred Sleeth
    Investor · Austin, TX · Member since 2014 · 144 posts · 85 votes
    2w

    @Gregory Acs and @Sruly Goldschmied made good points about padding the rehab budget and timeline. The piece I would add is that a $400K ARV alone doesn't tell us whether $130K is enough.

    Build a complete sources-and-uses sheet showing the purchase price, lender funding at closing, your required equity, points and closing costs, rehab funds held back, monthly carrying costs at both nine and twelve months, selling costs, and a rehab contingency. Then leave yourself an untouched reserve after all of that.

    One thing first-time flippers sometimes miss is that many rehab lenders reimburse completed work. You may need enough liquidity to fund the first phase before receiving a draw.

    I'd get an actual term sheet from a lender and model the deal around those terms. That will give you a much more useful answer than applying a general cash requirement to a $400K ARV.

    2Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2w

    You don't know what you don't know, so everything potentially helps you.

    Find local investor groups to join.

    Start looking NOW for a contractor and PAY them to walk listings that you might buy and generate SOW and bid as practice.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
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