While this was not my first property, this property was my first true flip. Not only that, but this property was my first out-of-state virtual flip. I made so many mistakes, and learned a ton!

I've really struggled with feeling like this property was a win. Will I make money? Yes, but very little. So as a fix and flip this property was a dud. But people keep telling me that I'm paying for my education.

I did receive a contract to sell the property through the MLS, but was likely facing losses of $15,000 or more. What I ended up doing with this property was placing it into a rent-to-own (lease option) contract with a buyer. If the buyer performs on the contract (2 year option), I will end up making $9,000 plus around $500/month in cashflow. I have it listed as $325/month in cashflow due to accounting for vacancies, capex, and maintenance, but since the property is brand new and the tenants are tenant buyers (greater pride of ownership/investment in the house) I'm hoping that I don't need to dip into those reserves.

I wrote a whole post about the lessons that I learned on this flip over at my website: If someone wants me to post that article here on BP (or if I'm not supposed to post links...I can't find the guidelines) please let me know!

Overall, I'm really proud of myself that I was able to take action and follow through on what turned out to be a very difficult and stressful process. I'm wiser now, and ready to move on to the next deals!

What made you interested in investing in this type of deal?

I was/am interested in BRRRRing properties to build up my cashflow. My current market of Denver doesn't support great cashflow (price to rent ratio is way off) and so I wanted to do this virtually by leveraging other people's time and money.

How did you find this deal and how did you negotiate it?

I found this deal through a wholesaler without negotiation.

How did you finance this deal?

I used hard money to cover purchase and rehab and I used a HELOC on my primary to fund the down payment and monthly payments.

How did you add value to the deal?

I did a nearly full rehab on the property including new roof, windows, flooring, and a lot more. The home was in serious disrepair when it was purchased and the yard had massive amounts of trash and junk in it.

What was the outcome?

I was unable to sell the property for the listed amount initially of 135k. I ended up getting a contract for 117 eventually, but ended up selling this property on a lease option agreement for 130k.