ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

A Lesson in Fix and Flip Properties

Updated on August 10, 2014

An Expensive Lesson in Fix and Flip Properties

My failed fix and flip was also my first rehab project. I purchased a home built in 1965, but it was in an upscale neighborhood near the beach in Clearwater, Florida. Although it was an older home with outdated appliances, it had many nice features including a pool and wood burning fireplace. The home was on a corner lot near schools so I thought it had great resale potential. At the time of purchase, a comparable sales analysis provided the after repair value of $350,000.00. I purchased it for $260,000.00.

The Rehab Project

This was a full rehab and an extensive project for a beginner such as myself. The electrical system was out dated and wouldn’t support the new appliances I installed so I had to replace it. The roof was also replaced, and the entire house was repainted inside and out. Most of the flooring was replaced with hardwood. Porcelain was used in the kitchen and two of the smaller bedrooms were carpeted. Sliding glass doors led from the master bedroom out to the sunroom. I felt it was awkward and would hurt the sale so they were removed, and a wall was installed. The pool was remarcited, and the yard was landscaped. The total cost of the rehab with materials and labor was $40,000.00.

Costly Mistakes

The first mistake I made was where the home was located and the price. Larger, more expensive homes are more difficult to sell than mid-priced homes. In addition, I didn’t have a backup plan or reserve cash in case the home didn’t sell. I spent an excessive amount on the rehab and only had enough reserves left to cover holding costs for three months. I failed to research information on the home such as property taxes. I was more than a little shocked when I received a tax bill for $5200.00. I held the home for two years and rented it. After dealing with tenants who would not pay, damaged the home or broke the lease, I finally sold it for much less than I had invested in it.

Rehab Lessons Learned

I’ve since flipped other homes and now realize that it is much simpler if the home is moderately priced. If I had the opportunity to purchase that home again, I would have spent less on the rehab and reserved enough cash to hold it for appreciation value. It was a great investment opportunity but not a suitable fix and flip project. When choosing a property to flip, it is important to be aware of all the expenses involved and have a contingency plan if it doesn’t sell right away. Researching information on the number of home sales and days on the market can help determine how long it might take to resell the home.

Estimating Rehab Costs

real estate


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)