Episode 175: The Final Flip Report – Lessons From Flipping in a Shifting Market
In this episode of Hustle Humbly, we bring you the final flip report. After successfully completing her second real estate flip, Alissa shares the full journey—from buying to renovating to selling. With a shifting market and nervous buyers, this project offered some unexpected lessons. If you’re a real estate agent or investor curious about flipping homes in changing conditions, this is a must-listen.
The Backstory: Two Flips, One Neighborhood
This was the second time we shared a flip project on the podcast. Just like the first one, we updated listeners through fun “news flash” segments during the renovation. Both homes were located just one street apart in Baton Rouge—an unusual coincidence in a geographically large market. The first flip happened in 2021 and sold quickly in a hot market. This second flip, though similar in many ways, unfolded in a very different climate.
The Property Details and Purchase Price
Alyssa bought the property for $180,000. It had previously been a long-term rental, but after a pipe burst and the tenant moved out, it became available. The kitchen had already been renovated using insurance funds, but the rest of the home was in poor condition. She used the same contractor and finishes as the first flip, which helped streamline the process. Despite a smaller square footage (1,750 square feet), this home had a better layout with four bedrooms.
The Market Shift and Pricing Strategy
When it came time to list the home, Alyssa priced it at $329,000—the same list price as her first flip. But with interest rates rising and buyers growing cautious, showings dropped off after about 10 days. She eventually reduced the price to $319,000. This brought back some interest, including from her own buyers who had previously ruled it out. This price adjustment was a critical moment in the final flip report, showing how fast the market can change and impact investor decisions.
Selling to Her Own Buyers
After the price drop, a pair of Alyssa’s investor clients re-engaged. Although the monthly payment at $329,000 was too high for their rental goals, at $302,500 (after seller concessions), the numbers worked. Alyssa structured the deal with care, fully disclosing her role as both listing and buyer’s agent, and took a ministerial role to avoid a conflict of interest. The buyers plan to rent the home for around $2,000/month, covering most of the mortgage.
Total Costs, Profit, and Comparison
Let’s break down the numbers from the final flip report:
- Purchase Price: $180,000
- Renovation Costs: Approximately $81,600
- Total Investment: $261,600
- Sales Price (after concessions): $302,500
- Profit: Roughly $40,900
In comparison, her first flip in 2021 cost $140,000 to purchase and netted $50,000 in profit. Although the second flip made slightly less, the holding costs were low, and the project helped sharpen her investing skills in a tougher market.
Lessons Learned About Flipping
Here’s what Alyssa took away from the final flip report:
- Flipping in a changing market means adapting quickly to shifting buyer behavior.
- Cash purchases reduce stress when holding a property, especially if it sits longer.
- Profit margins may shrink, even if the sale price is similar, due to increased acquisition and renovation costs.
- Self-awareness matters: Alyssa learned that she prefers not to manage every detail and is happier overseeing from a distance.
- Timing is key: While her first flip benefited from a booming market, this second project tested her patience and confidence.
The 1031 Exchange Conversation
Alyssa also tackled a common investor question: why not use a 1031 exchange? She explains that she prefers to pay taxes upfront and close the loop on each property, rather than defer capital gains taxes into the future. This insight is helpful for agents and investors weighing the pros and cons of using 1031s in their long-term strategy.
Closing Thoughts: Will There Be Another Flip?
For now, Alyssa says this is the end of the flipping road. While she wouldn’t rule out doing another if the right deal fell in her lap, the final flip report marks the end of this particular chapter. With changing interest rates, affordability challenges, and shifting buyer demand, flipping may look different going forward.
Listener Toast
We wrap this episode with a toast from Courtney Whitford in Dallas, Texas, who celebrates her friendship and mentorship with Danielle Burleson. Danielle has supported Courtney as a new agent, encouraged her through every step, and introduced her to the Hustle Humbly podcast. Cheers to strong agent friendships and supportive mentors!
Final Thoughts
Flipping homes can be profitable and fulfilling—but it’s also a lot of work and comes with risk. The final flip report shows how market conditions can dramatically influence your results. Whether you’re a seasoned flipper or considering your first project, staying informed, flexible, and realistic is key to success in real estate.
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